AC and pilots reach new 10 year agreement

Discussion in 'Air Canada | Aeroplan' started by londoncalling, Oct 6, 2014.  |  Print Topic

  1. londoncalling

    londoncalling Silver Member

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  2. mtlfire

    mtlfire Gold Member

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  3. milchap
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    milchap Gold Member

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    Before dancing in the streets, let us wait for the membership to ratify the agreement.
     
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  4. slalom

    slalom Silver Member

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  5. satman40

    satman40 Gold Member

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    Labor and a new contract that managment will pass in the cost to the consumer.

    Let's all hope the volume of travel does not decline, and the competation is cut off like it is in the United States,

    Protecting our Unions while shafting our buying public.

    Look how we did with our Auto Unions.

    It is never how much you make, but how much real purchasing power you have.,,

    You can price yourself out of a job.
     
  6. ACMM
    Original Member

    ACMM Gold Member

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    Any labour peace will be welcome for a longer term.
     
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  7. Wandering Aramean
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    Wandering Aramean Gold Member

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    All costs of operating the airline are borne by the customers. :rolleyes:

    It is FAR better to have a long-term contract in place which allows management to appropriately plan for costs over the long term than to be adjusting the numbers every couple years.
     
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  8. satman40

    satman40 Gold Member

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    I would agree, and yet the auto workers wages got out of hand and the taxpayers bailed them out never to be repaid.

    As for the airlines, same thing,

    I have never seen an airline ever make money, yet we have 5 planes leaving for the same destination, at the same time, and yet are less than 50% filled with paying passengers.

    I look back 70 years, I remember Government workers were the poorest guys on the block, today they are the richest

    In truth we are all much better off, even the old guy at the poor farm, retired.

    Welfare living today is better than how we grew up. Without the garden, the soup would have been just hot water..,
     
    Last edited: Oct 6, 2014
  9. QSG
    Original Member

    QSG Gold Member

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    Highlights of the New Agreement

    Lump sum signing bonus of $10,000 per pilot December 2014
    2% increase in every year until 2024, regardless of potential recession
    PLUS the following:
    2% lump sum payments in January 2016 & 2017
    900 Block Hour annual pay guarantee for first three years of agreement, retroactive to Jun 2,
    2014
    Increase to first three years of New Hire salary - 3%, 2%, 1% (on top of annual increases) - New Base monthly minimum
    Pay for meals on all domestic flying starting January 2016
    8 years of MPU increases commencing in 2017 (Guaranteed DB Pension Increases)

    Sharing Corporate Success:

    Current profit sharing plan remains in place
    New ACPA Incentive Plan (AIP)
    Mirrors upper management plan
    Based on EBITDAR
    4-8% of pilot annual payroll
    Pays out when Air Canada reaches 13.7% EBITDAR and above
    Pilots paid greater of current profit-sharing and new AIP plan

    AC Rouge Wage and Benefit increases:

    Increase AC Rouge first four years to mainline rates
    Timing of increase to match mainline (April 1 each year)
    Step on 50% FO mainline YOS to maximum of 6 years
    Increases to year 11/12 of A319 and B767 to move toward mainline and help achieve normal
    progression
    New ACrouge WB replacement equipment rates based on mainline rates, not external comparators
    Proration of Vacation and DSC

    Other Beneficial Changes:

    Increased WB for more higher-paying jobs.
    Replacement ACrouge WB now a WC position for CMSC purposes
    Protection of NB jobs through floor, ratios, and 328,000 North American BH guarantee
    Up gauging of aircraft at mainline and rouge equals more higher-paying jobs.
    Stability over long term
    CMSC Improvements
    Scheduling Improvements
    GDIP top up for pilots on Maternity Leave

    Scope Changes:

    Consolidated Block Hour Guarantee
    Narrow Body Block Hour Guarantee
    Narrow Body Fin Guarantee (the 2:1 reduction is gone)
    Increased Wide Body growth with guarantees
    CPA Growth/Shrink tied to Mainline fleet
    CPA jet limit maintained at 76 seats
    Now scoping 80-seat props
    Improved Code Share and JV language to encourage growth

    Framework Agreement:

    Provides for successive Collective Agreements IF the Company meets specific growth targets 75 WJA in 2017, 95 WJA including a minimum of 62 B777/787 aircraft in 2020 and 2023
    ACPA has unilateral right to deem that a benchmark has been met this allows us to keep the agreement going to ensure that the pilots get the 2%/year and the MPU increases, even without the promised fleet growth (i.e. in the event of a recession)
    Full right to bargain in 2017, 2020 and 2023
    If unable to resolve all issues during bargaining, mediation is available for all issues (3rd party helping
    both sides to reach an agreement. NOT binding).
    Interest Arbitration (not FOS) is available if necessary i.e. unable to reach full agreement in
    bargaining OR Mediation
    The arbitrator cannot address: Scope or annual wage increases both are protected going
    forward
    Express language using fair list of factors to determine the outcome
    Language allows us to seek gains to Pilot Benefits, Expenses, and DC pension plan in 2017, 2020 and/or 2023
    Framework concludes and we revert back to full Canada Labour Code provisions including the right to strike when: a) benchmark not met; b)the parties agree; or c) Sept. 29, 2024

    Other Important Issues:

    EMJ stays at Mainline
    CPA still limited at 76-seat jets
    No fleet growth at rouge (50 aircraft max)
     
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  10. ACMM
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    Thanks for sharing the details @QSG
     
  11. YULtide

    YULtide Gold Member

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    Now, if they'll just take care of the pension funding deficit, all will be well.
     
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  12. londoncalling

    londoncalling Silver Member

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    There are "openers" in the contract that will cover off irregular economic issues. At least that is what I assume they mean by the term.
    You will always pay more as time goes by and in good times because that is when the airline industry makes its money in order to survive the bad times.
     
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  13. londoncalling

    londoncalling Silver Member

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    "Now, if they'll just take care of the pension funding deficit, all will be well."

    Pension funding deficit has been taken care of by market forces and the catch up contributions made by AC. They are doing just fine in that department.
     
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  14. tomh009
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    tomh009 Gold Member

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    I would rather pay a bit more and have 8-abreast seating on the 787. The race to the bottom is no fun for me.
     
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  15. tomh009
    Original Member

    tomh009 Gold Member

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    AC is operating at an average load factor of 85%, not 50%.
     
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  16. YULtide

    YULtide Gold Member

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    Given interest rates, I'm amazed they've caught up, but I'm glad to hear it.
     
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  17. slalom

    slalom Silver Member

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    ...all of this, PLUS free porn? Where do I sign up?
     
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  18. mtlfire

    mtlfire Gold Member

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  19. mtlfire

    mtlfire Gold Member

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    Of course. Much better to level towards the bottom. We should all have good non unionized jobs with Walmart salaries.
     
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  20. satman40

    satman40 Gold Member

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    I can understand where you are coming from.

    Wall-Mart growth, while holding prices down has helped many folks, stretch their spending dollars.

    Union workers are like all other workers, they do their best to make their dollars go further, the businessman should have the same right, and yet last year 30 million dollars of Union dues went for political purposes.

    The world is not a perfect place, so it is a good thing many drunks are protected by unions, otherwise they would just be on welfare.

    I roll with the punches, and see both sides, I'd rather be paid on performance and production, than the same hourly wage as the guy next to me..
     
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  21. londoncalling

    londoncalling Silver Member

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    You can write to Lindalovelace.com
     
  22. londoncalling

    londoncalling Silver Member

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    Performance and production are death to unions. They love the term feather bedding as their contribution to success. :rolleyes:
     
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  23. satman40

    satman40 Gold Member

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    I have seen many a friend stuck in dead end jobs, only in later life we both watched the companies move out of town.

    Any business is nothing but a job shop, and no customer is guaranteed.

    As an owner, I know I get paid last, and sometimes not at all.

    But I do appreciate all the support staff, and they know it.
     
  24. tomh009
    Original Member

    tomh009 Gold Member

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    Where do you get your numbers? Total Canadian political contributions, from individuals, companies and unions, are only about $45M, and half of that is for the conservatives (unlikely to receive union donations, methinks).
     
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  25. satman40

    satman40 Gold Member

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    Sorry, I live South if the border, so my figures a from the newspapers in the lower 48.
     

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