Quebec Court of Appeal rules airline has obligation to maintain services
AIR CANADA’S appeal of a court ruling that requires the airline to keep maintenance operations in Canada was grounded by the Quebec Court of Appeal earlier this month.
A 2013 ruling from Quebec’s Superior Court found Air Canada was in violation of the requirements of the Air Canada Public Participation Act (ACPPA) when it failed to keep heavy-maintenance operations in Canada.
The Court of Appeal of Quebec upheld that lower court ruling on Nov. 3, 2015, ruling the wording and context of the ACPPA require Air Canada to maintain operational centres in Canada as they were in 1988 when the airline was privatized. This includes operations in Montreal, Winnipeg and Mississauga, Ont.
According to the court, only a statutory amendment would allow Air Canada to avoid this obligation.
The original 2013 lawsuit — filed by the Quebec provincial government and backed by the Manitoba provincial government — came after Air Canada subcontractor Aveos Fleet Performance went out of business.
Aveos — the private company that maintained many of Air Canada’s aircrafts — filed for bankruptcy, shut down its plants and locked out about 2,400 workers in 2012.
Of those affected employees, about 1,800 were based in Montreal, with some 400 more in Winnipeg and an additional 250 workers in Vancouver.
“Any time you lose 400 jobs through being locked out and then laid off, that has a very significant impact on not only the individuals but their families,” said Manitoba Premier Greg Selinger of the 2012 layoffs, promising to support Quebec as the situation develops.
Originally founded as Air Canada Technical Services in 1937, Aveos was the airline’s inhouse maintenance division. In 2007 it became an independent company and was renamed.
Air Canada was the firm’s largest customer and provided the company with about 90 per cent of its maintenance overhaul work.
According to Aveos, Air Canada reduced, deferred and cancelled maintenance work, resulting in about $16 million in lost revenue in a period of months.
Following the firm’s filing for bankruptcy, Air Canada moved the maintenance of landing gear and engines out of Aveos plants and began subcontracting work to international maintenance providers.
Air Canada argued it has respected the law by continuing to conduct aircraft maintenance at its facilities in Montreal, Winnipeg and Mississauga. The airline also argued the Quebec and Manitoba governments have no jurisdiction in the case because aviation is a federal matter.
There have been reports Air Canada is considering taking the matter to the Supreme Court of Canada, but the airline declined comment, with corporate spokesperson Peter Fitzpatrick only saying Air Canada continues to review the ruling.
Amanda Pask — a lawyer at Cavalluzzo Hayes in Toronto representing the International Association of Machinists and Aerospace Workers (IAMAW) — said it is unclear on what grounds Air Canada might attempt to ask the Supreme Court to overturn the ruling.
IAMAW is the largest union at Air Canada, representing more than 21,200 workers including aircraft machinists, mechanics, baggage handlers and ramp personnel.
“Air Canada hasn’t stated whether it plans to seek leave to appeal,” Pask said. “It would need leave. I’m not quite sure on what grounds it would have to get that leave, given the nature of the decision.”
Pask said the decision itself was significant in its unambiguous reaffirmation the airline has an obligation to maintain maintenance operations within Canada and the specific locations of Winnipeg, Montreal and Mississauga. How exactly that will be accomplished is less clear, she said.
“It’s not yet clear what will come out of this ruling. The decision is very clear that Air Canada is going to have to take some action, some very significant action, because the ruling is essentially that these centres have to be maintained as in 1988,” Pask said.
“So for Air Canada to get from its current position to that position, that requires some significant changes. In order to get there, I think the unions certainly have to be part of the discussions. "
Pask said the union — which represents the laid-off Manitoba workers — hopes to see collaboration between all of the parties involve as Air Canada brings itself into compliance with the ACPPA.
Tony Didoshak, general chair of the union’s District Lodge 140, agreed, saying in a statement, “As we move forward, the issue of remedy will be at the forefront of discussions between the provinces and our legal counsel.”
And while the parties are currently in a holding pattern, Selinger is already mapping out a future for maintenance operations in Manitoba.
“We have a younger population, we have a growing population, we have people wanting to move here from all over the world. And these are good jobs. If we’re able to retain them in Canada, these are good, skilled trades jobs,” he said.
“If those jobs were to come back to Manitoba, we could make sure that we have people well-trained and ready to take up that work, ready to put down roots and either stay in Manitoba or come back and work here if they’ve had to move. But we know we could supply the high-quality labour that’s needed to do this kind of work.”
