International Association of Machinists & Aerospace Workers IAMAW Machinists

August 24, 2006 13:48 ET

Arbitration Award Fails

Doesn't Recognize Contributions of Machinists

Attention: Assignment Editor, Business/Financial Editor, News Editor, Travel/Tourism Editor, Transportation Editor TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2006) - The wage arbitration award for IAMAW members employed at Air Canada Technical Maintenance Operational Support and Finance Units fell well short of expectations.

"I believe the award released by Arbitrator Don Munroe failed to recognize and seriously undervalued the contributions made by our members during the restructuring of Air Canada," said IAMAW District Lodge 140 President and Directing General Chairperson Jim Coller.
Under provisions of the Company Creditors Arrangement Act (CCAA) signed in 2004, unions, including the IAMAW, representing Air Canada employees, were allowed to enter wage re-opener talks with the company in 2006. The intent of this provision was to allow workers to recover some of their wages lost during the restructuring, once the airline had returned to profitability. Since emerging from bankruptcy protection in 2004, Air Canada has continually broke passenger load factor records and become profitable despite rising fuel prices. However, following two days of bargaining in May 2006, the company made it clear it had no intention of sharing this success with the workers who made this profitability possible. The result is the arbitrator's award which is final and binding and provides wage increases of 1 per cent effective July 2006, .5 per cent January 1, 2007, 1.75 per cent July 1, 2007 and 1.75 per cent July 1, 2008.
"Mr. Munroe saw fit to exceed the previous award granted by arbitrator Michele Picher to CAW members at Air Canada, but it's still not enough," added Coller. The IAMAW is the largest union at Air Canada with more than 11,000 members employed as mechanics, ground handlers, baggage handlers, cargo agents and clerical and finance workers.

/For further information: Jim Coller – IAMAW District Lodge 140 President and Directing General Chairperson
Bill Trbovich – IAMAW Director of Communications
416-386-1789 ext 31/416-735-9765

Contact Information

  • Bill Trbovich, Director of Communications, IAMAW Machinists
    Primary Phone: 416-386-1789 ext. 31
    Secondary Phone: 416-735-9765