Judge Won't Let Airline Junk Collective Bargaining Agreements

Paul Vieira, of Canada's Financial Post, wrote of the ruling, "Unions representing 35,000 Air Canada workers scored a 'minor victory' in court [Tuesday] as the judge overseeing the airline's restructuring [Justice James Farley of Ontario's Superior Court of Justice] effectively knocked down the company's ability to do whatever it pleases with its collective agreements."

The airline, under CCAA bankruptcy rules, had wanted certain provisions of the contracts suspended or changed; the unions wanted to deal with the contracts, as written. What happened: the entire negotiation is now "in limbo," giving all parties at least a framework from which to build.

The judge explained, "I am of the view that preferred way of dealing with that is to treat those various paragraph adjustments, and the paragraphs themselves, as being in limbo. That is, neither Air Canada nor the unions can rely on them until further order of the court or by consent of those parties."

"A successful marriage doesn't require 50-50 co-operation," he reminded the crowd in the courtroom. "It requires 100-100 co-operation." Judge Farley also admonished both sides to get back to "meaningful" negotiations -- or, he implied, he'll settle things his own way.

FMI: www.aircanada.ca