Companies should be careful what they bargain for in their collective agreement. Air Canada tried to get out of layoff provisions negotiated with the Canadian Auto Workers, but the Canadian Industrial Relations Board (CIRB) recently cancelled this action.
Air Canada’s state of affairs has gone from bad to worse as a result of the Sept.11 attacks. The government has provided some aid, but made no mention of helping the airline with job reductions. With nowhere else to turn Pat Heinke, senior director of labour relations, said these are desperate times, and they have to let people go.
“This is not something that can be put on the backburner. We had concerns over the general downturn of the economy and then the 11th hit us and it just created a dramatic, absolutely dramatic environment that has to be reacted to fairly quickly, so in the context of that, we felt we had no option but to effect layoffs.”
The airline issued almost 1,300 pink slips to employees, despite the contract prohibiting layoffs until April 2004. Upset with the decision, the CAW took it to the CIRB for review. The Board stepped in, reversed the company’s decision and directed the union and management to go back in to negotiations.
Buzz Hargrove, CAW president, said a collective agreement should not be breached under any circumstances.
“We saw this as simply reinforcing the idea that collective bargaining is legitimate and when you agree to something, you have to live up to it,” said Hargrove. “They have an absolute obligation to do that and I’m absolutely convinced that they can...they’re not trying.”
Canada’s largest airline carrier and the CAW entered into the collective agreement last year. Hargrove said the union originally discussed economic clauses allowing changes to layoff provisions, but Air Canada said they could manage without making any involuntary layoffs.
Before the announcement of the unexpected layoffs, the CAW had been in discussions with the federal government and Air Canada about the possibility of voluntary downsizing according to seniority and with a guarantee of benefits. The CAW also raised the possibility of increased job-sharing.
However, Heinke said these original suggestions were too expensive to implement.
“We had a difference of opinion as to what costs and what doesn’t cost. We have to pay for it so we ultimately made the decision that the unions proposal was costly to us and we could not go forward with it.”
Hargrove said lack of funds is just a smokescreen for management to hide behind.
“It’s easier to just do it their way, to throw people out on the streets. It’s lazy management.”
According to Lloyd Field, author of Unions are Not Inevitable, Hargrove’s behaviour is not out of character.
“He’s got a collective agreement that he’s going to beat the drum on. It’s part of the nature of his role to do what he’s doing.”
Field also said Air Canada’s reaction to the situation is appropriate considering they have to make major changes. The airline’s management said they are committed to coming up with a resolution that will satisfy both parties.
CAW represents about one-quarter of the airline’s 40,000 employees and is not the only union Air Canada has to worry about. CUPE, the Air Canada Pilots Association, and the International Association of Machinists and Aerospace workers all want a fair deal from the carrier.
While the CAW was able to stall Air Canada’s layoff decision, IAM — which represents 15,000 Air Canada workers — was not as lucky. The CIRB rejected their request to block almost 1,200 layoffs.
Heinke said making layoff decisions has been a tricky balancing act.
“They all have different interests, so we’re trying to accommodate them. (But) our employees interests and the airline (both) need to survive,” Heinke said.
Survival is a key component when it comes to handling a business in crisis, but based on the “new world reality” of Sept.11, employers must bring compassion to the discussion table, Field said.
“Management has got to deal with this in a way that not only protects the business, but shows a high level of compassion for its human resource. There’s got to be a balance. Any hard-nosed action on behalf of management during a crisis would be taken as too confrontational.”
Field said companies who don’t value their human resource factor, won’t have a “bedrock” to handle disaster. If management has done a good job establishing their corporate value system, that’s what they have to rely on, he said.
Hargrove admits the union’s relationship with Air Canada has been a difficult one, but he hopes their differences can be put aside.
“Can we get over this? Of course we can if the company comes to their senses and tries to finally resolve with the union. We’ll respect our collective agreement and we’ll respectively have a bargaining agent.”
At press time, the CAW and Air Canada reached a tentative agreement on a work-sharing program.
Air Canada’s state of affairs has gone from bad to worse as a result of the Sept.11 attacks. The government has provided some aid, but made no mention of helping the airline with job reductions. With nowhere else to turn Pat Heinke, senior director of labour relations, said these are desperate times, and they have to let people go.
“This is not something that can be put on the backburner. We had concerns over the general downturn of the economy and then the 11th hit us and it just created a dramatic, absolutely dramatic environment that has to be reacted to fairly quickly, so in the context of that, we felt we had no option but to effect layoffs.”
The airline issued almost 1,300 pink slips to employees, despite the contract prohibiting layoffs until April 2004. Upset with the decision, the CAW took it to the CIRB for review. The Board stepped in, reversed the company’s decision and directed the union and management to go back in to negotiations.
Buzz Hargrove, CAW president, said a collective agreement should not be breached under any circumstances.
“We saw this as simply reinforcing the idea that collective bargaining is legitimate and when you agree to something, you have to live up to it,” said Hargrove. “They have an absolute obligation to do that and I’m absolutely convinced that they can...they’re not trying.”
Canada’s largest airline carrier and the CAW entered into the collective agreement last year. Hargrove said the union originally discussed economic clauses allowing changes to layoff provisions, but Air Canada said they could manage without making any involuntary layoffs.
Before the announcement of the unexpected layoffs, the CAW had been in discussions with the federal government and Air Canada about the possibility of voluntary downsizing according to seniority and with a guarantee of benefits. The CAW also raised the possibility of increased job-sharing.
However, Heinke said these original suggestions were too expensive to implement.
“We had a difference of opinion as to what costs and what doesn’t cost. We have to pay for it so we ultimately made the decision that the unions proposal was costly to us and we could not go forward with it.”
Hargrove said lack of funds is just a smokescreen for management to hide behind.
“It’s easier to just do it their way, to throw people out on the streets. It’s lazy management.”
According to Lloyd Field, author of Unions are Not Inevitable, Hargrove’s behaviour is not out of character.
“He’s got a collective agreement that he’s going to beat the drum on. It’s part of the nature of his role to do what he’s doing.”
Field also said Air Canada’s reaction to the situation is appropriate considering they have to make major changes. The airline’s management said they are committed to coming up with a resolution that will satisfy both parties.
CAW represents about one-quarter of the airline’s 40,000 employees and is not the only union Air Canada has to worry about. CUPE, the Air Canada Pilots Association, and the International Association of Machinists and Aerospace workers all want a fair deal from the carrier.
While the CAW was able to stall Air Canada’s layoff decision, IAM — which represents 15,000 Air Canada workers — was not as lucky. The CIRB rejected their request to block almost 1,200 layoffs.
Heinke said making layoff decisions has been a tricky balancing act.
“They all have different interests, so we’re trying to accommodate them. (But) our employees interests and the airline (both) need to survive,” Heinke said.
Survival is a key component when it comes to handling a business in crisis, but based on the “new world reality” of Sept.11, employers must bring compassion to the discussion table, Field said.
“Management has got to deal with this in a way that not only protects the business, but shows a high level of compassion for its human resource. There’s got to be a balance. Any hard-nosed action on behalf of management during a crisis would be taken as too confrontational.”
Field said companies who don’t value their human resource factor, won’t have a “bedrock” to handle disaster. If management has done a good job establishing their corporate value system, that’s what they have to rely on, he said.
Hargrove admits the union’s relationship with Air Canada has been a difficult one, but he hopes their differences can be put aside.
“Can we get over this? Of course we can if the company comes to their senses and tries to finally resolve with the union. We’ll respect our collective agreement and we’ll respectively have a bargaining agent.”
At press time, the CAW and Air Canada reached a tentative agreement on a work-sharing program.
