MonTREAL — Air Canadas largest unio is seeking the help of the countrys labour relations board to protect its members from the airlines cost-cutting efforts and a feared move to outsource some of their jobs.
The International Association of Machinists and Aerospace Workers filed two applications Friday with the Canada Industrial Relations Board to have Air Canada declared the employer of its low-cost Rouge subsidiary and Sky Regional Airlines, an privately owned partner.
The applications are designed to ensure the unio continues to do work for both airlines despite discussions on lowering costs similar to the terms of the 2011 arbitration with pilots and flights attendants.
The work that we currently do today is work that we want to ensure that we secure up for the future, IAMAW general chairman Fred Hospes said in an interview from Vancouver.
The unio contends Sky Regional and Rouge were created to fly Air Canada planes and routes at lower costs, but are controlled and directed by the countrys largest airline.
unio members mainly provide mechanical and baggage handling services for Rouge aircraft. But the airline contends the work is based on service level agreements Air Canada has with Rouge, rather than a collective agreement.
In its application, the unio said it fears the work could be lost if Rouge decides not to continue the agreement and instead contracts it out to third parties.
Hospes said its a strategy used by other Star Alliance partners like United Airlines and by Air Canada itself at Londons Heathrow airport.
Were saying you can have whatever agreement that you want but youre wholly owned by Air Canada so its all our work under our current collective agreement.
The unio provides service for Sky Regional at some locations on 15 Embraer 175 regional jets transferred from the mainline carrier. Since the transfer, the unio said Air Canada has argued the work no longer falls under the scope of its bargaining agreements.
It said Air Canada advised last month that the unio will only continue to provide ground handling work for two years. The unio doesnt do ground handling work on Q400s at Billy Bishop Toronto City Airport and no longer provides cabin grooming at Toronto Pearson or Montreal airports.
What Air Canada obtains from Sky Regional is neither seat capacity, nor routes, nor aircraft, nor access to a pre-existing infrastructure, but rather the opportunity to have operations carried out outside the scope of its own bargaining certifications by lower-cost, non-unio labour, the application said, noting that these arrangements serve to undermine the integrity of existing bargaining rights.
Hospes said the unio is willing to continue discussions with Air Canada about lowering costs, but hasnt been given a target or how the airline wants to achieve savings. Rouge and Sky Regional have lower operating costs due to lower wages, more flexible work rules and lower overhead.
Theres no doubt they want to reduce their labour costs so part of these applications is to create a foundation in order to enter into discussions to try to reach a resolution that protects all of this work that we currently do today into the future.
Air Canada spokesman Peter Fitzpatrick said the airline has worked co-operatively with its employees to create Rouge as a low-cost competitor.
Relationships with smaller carriers for regional flying is a fundamental component of Air Canadas network, and our employees recognize the importance of these carriers for Air Canadas competitiveness and profitability, he wrote in an email.
Until it sees the filings, Air Canada doesnt have enough information to comment on the unio applications, he said.
The unio wants the labour relations board to bind Rouge and Sky Regional to the collective agreement it has with Air Canada, like it did in 2003 with Air Canada Zip Air and later with maintenance and overhaul company ACTS. The agreement expires in 2016
The IAMAW represents more than 8,800 workers, including line maintenance mechanics, auto mechanics, baggage handlers, cargo agents, aircraft cleaners, cabin groomers, millwrights, electricians and technical writers.
Launched last July, Rouge serves routes to sun destinations and Europe. With more seats, lower wages, more flexible work rules and lower overhead, Rouge flights are cheaper to operate than Air Canadas main network.
Operating under the Air Canada Express banner, Sky Regional operates flights between Montreal and Toronto City Airport as well as flights mainly from Toronto and Montreal to the U.S. Northeast.
