Monday, November 6, 2006
Labor Notes
Air Canada Jazz
Pilots and flight attendants at Air Canada Jazz have been awarded pay increases by labor arbitrators. The 3,100 pilots represented by the Air Canada Pilots Association will receive a two percent increase backdated to July and another 1.75 percent a year later as well as in July 2008. The 740 flight attendants were made eligible for profit sharing. Attendants, represented by Teamsters Canada have also been awarded a one percent wage increase, backdated to June and followed by a 1.75 percent increase in June 2007 and 2008. The company is still negotiating with 54 dispatchers, represented by the Canadian Air Line Dispatchers Association.
Atlantic Southeast
ASA President Bryan LeBrecque told investors he notified the National Mediation Board ASA does not think the time is right for arbitration, which was requested by pilots. (RAN, September 25, p.5) However, he expects a decision on the pilot's request is soon.
Comair
Under pressure from Delta to gain labor contracts soon, Comair said it plans to ask its bankruptcy court to impose contract concessions on pilots if the two sides can't reach agreement on their own. (RAN, October 23, p. 5) Comair originally wanted $17.3 million in concessions from pilots but its latest proposal is for $15.8 million in pay and benefits cuts.
Pilots said the givebacks would amount to more than that. The move was prompted by the fact pilots will receive an average eight percent wage hike in January if a new agreement is not reached, which the airline said, would put them farther out of the fee-for-departure market. Observers indicated that Comair's situation is the tail wagging the dog as stubborn negotiations make Delta wait on determining what its fee-for-departure costs will be. Recently, the airline settled with its machinists and well as its flight attendants.
Mesaba
Significant progress was made at embattled Mesaba Airlines (MAIR). It reached a tentative agreement with its mechanics after reaching similar agreements with pilots and flight attendants, closing a troubling, litigious battle for the life of the airline. (RAN, October 30, p. 6)
The Northwest Airlink now meets its objectives for cuts, although it declined to disclose the total amount, and prevent liquidation, threatened by its creditors.
The Pioneer Press reported that the company is being squeezed by its major partner seeking cuts in payments to regional partners as part of an effort to save $2.5 billion in operating expenses. The agreements, if ratified, pave the way for the airline to tap $24 million in financing.
The fate of the airline is now up to union members who will be voting all month on the various contracts. Aircraft Mechanics Fraternal Association (AMFA) Spokesperson Nick Granath said, while the agreement is not something they prefer, it is the best chance for Mesaba's survival. The alternative, he said, is clearly worse. The flight attendants union said that the pact provides the right economic relief for Mesaba while preserving a livelihood for its members.

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