Air Canada cutting 300 jobs in Toronto

[CD]

Air Canada cutting 300 jobs in Toronto
Last Updated Fri Jan 17 16:09:19 2003

TORONTO-- Air Canada (TSX:AC) said Friday it is laying off 300 employees in Toronto as it tries to cope with reduced passenger demand.

The company told CBC Business News that it informed the International Association of Machinists on Thursday of its intent to issue temporary layoff notices to approximately 300 people who handle baggage at Pearson International Airport in Toronto. Those layoff notices were slated to go out Friday.

The airline said the layoffs reflect current economic reality as well as reduced demand.

CBC News Story (http://cbc.ca/cgi-bin/templates/print.cgi?/2003/01/17/aircan_030117)

[SMNAV]

As one of the 2002 summer Temps...this is really bad news...! I was hopping for some good news, but as i can see...things isn't going so well...!
It's really sad...!
Can't wait to be back on the line with you guys...!
Mario

[JetBoy76]

Hang in there Mario!
I hope you get back soon, and all the temps, just remember that things in this industry change on a daily basis(for the best too)
Hope to see all of you on the line soon :smile_2:
JetBoy :windsock:

[temp]

Very disappointed!!!!! Here I am sitting at home taking good care of my two baby boy for the winter. There was no reasons for me to find another job since I was almost sure that ac would call back all the temps for the summer.
Starting today; I'm hunting for a job.... :crazy:
I miss all of you,
Happy flying :pilot_2:

[CYNIC]

STORY IN JAN23 FININCAL POST Air Canada is meeting with it's unions in order to get some wage roll backs, and or 3000+/- job reductions. Guess the fun is going to start. American Airlines has just announced it's largest lost ever!!!! :confus_2:

[Snackpack]

Hi CYNIC,

Only because you mentioned that article above, I feel compelled to post part of the Air Canada news from yesterday which I received via email:
----------------------------------
Thursday 23 January 2003
Air Canada News:
Today’s National Post article filled with inaccuracies. An article which appeared in the January 23rd edition of the National Post reporting that meetings are scheduled to take place today involving Robert Milton and certain union leaders as well as speculating on a number of scenarios is erroneous. The article also cites unnamed union “insiders” who outline plans involving cuts in the management ranks. The speculation by union “insiders” and anonymous sources quoted in the article is irresponsible. While management-union meetings are regularly held to discuss a wide variety of issues, Robert is not involved in any such meeting today. The article also mistakenly reports that the government’s no layoff guarantee, which expired over a year ago, has been extended to 2004. The current industry environment is certainly challenging – as evidenced by yesterday’s record $5.6 billion (Cdn) 2002 loss reported by American Airlines – and Air Canada must aggressively continue to reduce costs. The company’s focus remains re-engineering our business, innovating our products, reducing costs, maximizing revenues and taking care of our customers.
----------------------------------

Who knows what to believe anymore? With the media's track record, I tend to disbelieve the National Post story, or at least suspect it's full of exaggeration if not downright fiction. Time will tell.

Mario and temp, chins up. I know it's a pain to be laid off and I feel for you. However, this industry is so cyclical that in a few years from now we'll likely hear complaining that the airlines can't find enough qualified personnel. That's an opinion from me, the eternal optimist! :smile_2:

[cessnapimp]

Hey Mario!
Hey temp!

Don't you guys give up now... that's what January is all about. Dead period. Rumours flying left, right and center. I have a good feeling we will get recalled around May. The schedule looks busy for the summer. I am basing myself on the international route schedule that AC has submitted to IATA (International Air Tranport Association). A friend gave it to me yesterday. If anyone cares to see it I will gladly e- mail it over.

How are you holding up temp? I miss the 767 runs we did back in June! Now that was just a blast! I hope to get paired with you again sometime! Keeping the little munchkins under control? :grin: See you soon!

Say hello to Sylvain for me Mario... take it easy!

Grégoire

[mareli]

Air Canada Liquidity Concerns At Fore As Iraq War Looms
Friday January 24, 2:11 pm ET
By Monica Gutschi, Of DOW JONES NEWSWIRES

TORONTO (Dow Jones)--Speculation that Air Canada could face a liquidity crisis appears to be increasing as the U.S. moves closer to a war with Iraq.
RBC Capital Markets analyst Nick Morton said Friday that
more U.S. airlines are preparing for the possibility of bankruptcy and that Air Canada face the same situation if a war begins. "Operating losses are mounting and the risk is rising," Morton said in a research note.

The Toronto Star newspaper reported Friday there are growing fears the airline may be forced to follow several of its U.S. counterparts and file for creditor protection. Air Canada holds debt of about C$12 billion.

There has also been speculation in the bond market that the airline could face a liquidity crunch if the crisis with Iraq escalates.

In Toronto Friday, Air Canada shares are down 22 Canadian cents, or 5.2%, to C$4.00, extending their decline to four consecutive sessions. The stock has lost 13.75% over those four days.

The outlook for both of Canada's major airlines, Air Canada and low-cost rival WestJet Airlines Ltd. , has dimmed in recent weeks as fuel prices have risen during a seasonally weak period. The airlines have launched what appears to be a full-fledged fare war that has prices on some western Canadian routes slashed by more than half.

Several brokerages have downgraded and reduced either their stock-price targets or earnings estimates on both companies. And both companies have issued earnings warnings, with Air Canada forecasting losses in both the fourth quarter and full year. WestJet guided estimates lower, saying its fourth-quarter earnings would be around 8-11 Canadian cents a share rather than the 16-17 Canadian cents a share previously estimated. WestJet shares are down 4 Canadian cents to C$14.11 in Toronto Friday, near its 52-week low of C$13.95.

On Friday, Morton lowered his one-year target on Air Canada to C$2.30 from C$ 4.50 and changed his estimate of the company's 2002 loss to C$3.13 a share from C$1.23.

[temp]

Hey Cessnapimp!!!! You are always making me happy, whenever I hear from you. I hope you are doing well in T.o.. Thank you for your optimism. Send me an e-mail and take good care of you. I got to go. Savion is trying to write on the keyboard...
Bye
p/s It would be nice to have another month of flying together we make a good team!
cyn :pilot_2: </font color>

[flyboyyvr]

So bring on the layoffs to in-flight I take it? Love this.....hasn't even been a year since I've been called back...and I'm sure that I'm out again.....it's like dancing on dental floss ever since 9/11.......It's extremely stressful....and now this.......ARGHHH!!!!!

[Flying_None]

Hi guys,

I'm getting this sinking feeling in the pit of my stomach. Like flyboyyvr I have been back at work for 9 months and am dreading the lay-off's already. So much for the 'no lay-off clause' in our 'new' contract. I knew not to trust that very much when I was voting. Anyway, I really hope we'll be around for a while longer, but like I said, I have this sinking feeling in the pit of my stomach ...

[flyingyyz]

Umm, there is a no-layoff clause, so don't be dreading layoffs. The only way for the company to do it is by volunatary layoff, if they in fact want layoffs.

[SMNAV]

Every day of the week i think about being back on the line, and do what i like the most...wich is...being a F/A...and work for Air Canada...!
But now, with all these rumours...i'm really not sure that this will happen any time soon...! I'm really desapointed, sad,confused...you name it...! But there's one thing very funny and weird..."planning" told a friend of mine (F/A YYZ based)that they might be really, really short of F/A in YYZ for next month, so they couln't gave him any LOA for Feb.! Who's telling the truth...what's going on here...?
Maybe one day, the phone will ring and it will be "crewsched"...! :confus_2:
Cheers... :plane:

[flyboyyvr]

FlyingYYZ.......the 'no-layoff- clause is in affect until we go to war, then they can lay us off,.....or am I not understanding the new contract properly???? It was my understanding that if there is another 9/11 or an act of war...the pink slips start rolling...

[Breeze]

Layoffs might not be out of the question, even if the union managed to negotiate no layoffs for ab-originals. I think concessions will be the order of the day, so people will have to decide if they want to undermine their own contract and accept very strict terms on pay and working conditions or instead keep the contract they have and allow layoffs. Working conditions are the easiest to make concessions on, because nobody understands the immediate effects.

Neither option is acceptable of course, but if the regional is a micrcosm of the mainline, then the number of layoffs required could reach as much as 30% of F/A's The regional F/A's are obvioulsy paying their dues far and above any other group. If they lay off 300 or so F/A's from aircraft which only have one F/A, then it is reasonable to expect 600 pilot layoffs.(I know-the numbers sound pretty crazy) But the company is only laying off 100 or so this time around. I don't doubt that the regional pilots can expect to face wholesale layoffs after the "first wave" as it happened with the F/A's. After all is said and done, I think the pilot numbers will eventually match those of the F/A's at the regional.

But as I say, if the regional operation is a microcosm of the mainline, then mainline F/A's should expect the same kind of devastating layoffs. An airline cannot expect to maintain its profitability on cannibalizing its own routes only to find that passenger loads are just not in agreement with any new strategy. All of the hoopla about how great "Zip" is has failed to convince anyone that this is a good long-term strategy. Seat sales will only endanger the industry as a whole. I think we are right back to where we started in the '90s

We witnessed the devasted communities in B.C. for many reasons tied to the resource industry. But this is only a harbinger for a much more pervasive recessionary slide. Usually you can say what happens at the regional will follow at the mainline, because the economy is resource based in Canada.

So F/A's have to decide. Do you want major concessions, in the order of a 15% pay cut and primitive working conditions, as has happened elsewhere in North America, or are you willing to accept layoffs in lieu of major concessions?

Brz

[Flying_None]

Sorry if I sound angry, but what do you mean, keep the contract and accept lay-offs. Who is "accepting" the lay-offs? Those that keep right on working with 'their' contract or those once again out on the street. I think the union must fight tooth and nail to keep all of us on by other means, such as leaves, mini blocks etc! I also think that another look at another round of buy-outs should be taken. If more senior people leave (even at a payout of $800/mo for a few years) they will still save millions as we make so much less than the top scale. Why does that never seem to occur to those at the top?

Anyway, I am dreading the next few weeks and am afraid if I get laid-off again I will never be back. But hey guys, ik you want to keep your contract by accepting lay-offs far be it from me to stop anyone.

[Was_Moeman]

Hopefully, if AC is in as much doodoo as they say they are, the feds will pony up for some kind of severance or leaves. It would be cheaper than letting the company fail and then paying us all EI, and that goes for all the unions, not just ours.

[Peanut]

Well, this is the thing...lets not over react. I think we are in doodoo. But that's nothing new really. Ever since the merger we have been in deeper and deeper doodoo...bad timing for certain incidents etc...let's just remember, without us, nothing moves around the country so we won't be left to dry suddenly and overnight. Who can blame a company for being cautious? I am happy that the company is taking steps to tighten its belt. But as I read in an article yesterday, war with Iraq, if it's of short duration, may not be a totally bad thing for us, it may indirectly lower fuel prices...let's try to keep positive. What doesn't kill us makes us stronger remember?

[Breeze]

Have to agree with what you say, Flying None, the situation is none too pleasant. But look at what has happened in the States. Companies are able to layoff in droves, saving them huge costs and are still demanding major concessions.

I think this is totally wrong. You can't have both. F/A's will absolutely have to be practical on this issue or risk winding up just like United. They have laid off 4200 F/A's. That's 25% of the workforce under bankruptcy. (Jazz laid off around 25% of its F/A's because 30% of the flying went to Zip and to parked A/C.) That should save the company $1.68 Billion in one year. Thats right. Billion. On top of that, they also demand wage concessions. This, I think is totally criminal, to terrorize the employee group with layoffs, then also to demand concessions to pay and working conditions. If the company then goes under after the layoffs and taking money out of the pocket of employees which is rightfully theirs, how does it help them? It doesn't. It just benefits the high powered lawyers and restructuring experts, nobody else. Why give them all of the hard earned money that was earned under a fairly negotiated contract?

It's my opinion that layoffs are inevitable for the mainline. More than have every been laid off at one time before. If a company lays off fairly, then you only layoff what you need according to economic necessity and not attempt to profit. But if you lay off more than you need to, and also demand concessions, there is an element of greed which belies the contempt that the management holds for their own employees.

It was the management that made the mistakes and jeopardized jobs. It was economic conditions that forced changes which could not be fully anticipated, but there is no rationale for wrestling concessions after laying off, because you are already saving money.

My bets are on layoffs, hoping that they will be temporary, rather than permanent. This has been an unwritten agreement at the mainline the last time there were layoffs. It is likely a repeat scenario. So if the company is allowed to layoff the necessary numbers to save the airline and the majority of employees, this reaches the stated goal. Therefore, asking for concessions at the same time is an irrational demand.

But demanding no-layoffs and fully expecting government support other than EI, which everyone is entitled to, is completely mistaken.

Nobody was there to help us, the regional people, not the government, not the company(moves unpaid still in grievance)- we were left to our own devices. So I am not in agreement when someone from the mainline turns around and immediately starts demanding security when the regional people were given none and simply shown the door on short notice.

There isn't a single Canadian who supports any move to prop up ailing airlines and self-righteous employees' priviledges any longer, because they too have had to face on-going downward pressure on wages and layoff without any recourse. That is the political situation. And in that matter, I totally agree.

I say let the company layoff, but keep your wages and working conditions. When the recovery comes in the next while, then many will for certain be called back into a more healthy environment.

Sorry if this sounds harsh, but that is the reality.

Brz

[Fly_Boy_YUL]

Is Air Canada in trouble? Sure. We are a member of a big club... unfortunately one noone wants to be in right now: Full Service High Cost Airline.

Will Milton be asking for concessions? Sure. Why not "Everyone else is doing it".

Will there be layoffs? Sure in the company as a whole. Not sure about cabin crew. That will depend on the number of aircraft flying and the level of service. Those have ALWAYS been the defining factors.

So, would you rather hang tough and refuse any and all offers (as unpleasant as they may be) or toss the dice and hope the the government will come to the rescue. They will probably do so. There is a lot riding on this, but with $12 BILLION in debt, the thought of restarting from zero could be very attractive. Air Canada can close tomorrow and re-open as Canada Air-Lines. Swissair did it (now Swiss Air Lines, catchy eh?).

If we want to survive then we need to make tough decisions, but lets make the smart ones.

1 - Get rid of excess in non revenue generating areas ie: the fat that just pulls us down and adds nothing. Our buisness is providing safe reliable transportation, start there and keep those who keep that going. Check your 123. See the number of jobs that are in In-flight. How many need to be there. Sorry for sounding so glib. I fully understand that there are PEOPLE doing those jobs, and that they have homes, cars, husbands, wives, children, etc. They deserve to be treated properly, to have the same options: work sharing, packages, etc.

2 - Get the government involved. They helped create this monster, they must shoulder some of the responsibility to finding a way to make it work. Air Canada and Canadian paved the roads in the sky. That took time, talent and work. Now it seems that anyone with a used cheap million dollar jet with a new coat of paint, can get into the act and "Take down that Over-priced, Money grubbing, Crown Corporation Air Canada".

3 - Look (again) at ways to avoid layoffs. 300 packages is a joke. Offer 1,000. How do we pay for them? Wage rollbacks could be one, use a portion of the "Loyalty Bonus" could be another. Here is a perfect way to get the government involved. Make more block sharing available and supplement the income of those on the program (as has been done before). Reduce our working hours and supplement with EI, etc, etc, etc.

4 - Get some leadership that we will follow, that we can trust, that can negotiate with the government, that appreciates its employees and sees them as people. Obviously this eliminates our current Pres. With him, there can be no negotiating with the government. They (govt) are just waiting for him to fail, and us along with it.

The advantage that the low cost airlines in this country have is that they are young companies. Their employees (front line) are roted in and out often, mainly due to the low wages and tough schedules. There are no 30 year employees at West Jet, or Can Jet, or HMY, or SkyService. Nor will there likely be. That is where most companies are going (airline and other). They want to get the most out of you at the lowest cost, and then dump you when they're done. Does that make a good industry? I like to think that I earn my money using my knoweledge over the past several years to make the flying experience of my customers as worry free as possible.

So, what do you think?

Wage concessions? (regardless of new contract)

Layoffs? (regardless of new contract)

Other? (regardless of new contract)

I for one am getting too old to start over again.

[dartagnan]

At this point only the Brits and the Americans are on a strong path to war. Canada is not for the moment. Plus I think war would actually have to be raging inside Canada for them to start laying off(there has to be extraordinary events at work with actual physical damage to canada's infrastructure). Its like taking the "act of god clause" and saying : there was a huge huricane in florida we are loosing money on these routes so we have to layoffs (makes no sense; now if a tornado destroyed half of Pearson international the act of god clause would actually apply. In the mean time they have to abide by a contract which both groups signed in good faith! They will have to find other ways of cutting cost at Air Canada and it will not be through layoffs or wage rollback. They could start by scrapping J-class training, scrapping the 123, or moving us to a SOLO type of bidding (Not the ADOPT system like the pilots). The juice and water on the ground on transborder flights is something they could also look at. The stupid full service between YYZ and YOW is not only detrimental to our fa's health (possibly translating in more bookoffs) but costing a bundle (It's a flippin 30 minutes flight get a meal at the airport people)...

[myah]

I thought we just signed a contract that would prevent this layoff situation... They surely knew about the debt before signing... Are you guys telling me that the contract is nulled? It did have a very clear NO layoff clause in it.

[damo]

Hi all,

Is it human nature to always foresee the future with such glum prospects? There is nothing we as individuals can do to prevent or alter that which is about to come down the pike, be it good or bad. When you have that infamous pink slip in your hand is the time to worry about what to do. Until then be happy you are flying and have a steady income. As for concessions, we have a union in place to protect us against such a plan, let them do their job.

This is not the first nor do I think it will be the last time these lay-off rumours run rampant amongst us. Attribute them to nothing more than hearsay and enjoy the wonderful life you have right now. Summer is coming. :smile_2:

damo

[myah]

Thanks Damo, how right you are!

[yulpurser]

Flyboy your commentary is full of very interesting points to reflect upon. We have to look in the US and Europe at what is happening to other airlines ( and Swiss is an amazing story of theft and of many, many people left out to dry). Mr Milton and those around him can see the game from the top where the millions are. They have an idea where they want to get . We have to support their effort in the measure that we want our airline to succeed, so our employment remains secure. I wonder what decision will be asked of us by our employer? :cool_2:So far, in my perception, they run the show anyway.
Over the past few years, Mr Milton has had staying power. He became a Canadian citizen. He seems to be doing better financially than the CEOs of the major airlines. It is safe to assume that he is in the picture for a while. You are right when you say he is not too well received in Ottawa. In fairness, it must not be fun for a man of action such as Mr Milton to deal with a minister such as Mr. Collenette. I just hope the next leader we have has the same passion for people that Mr. Milton has for airplanes. Can't help it, I miss Hollis.
I sincerely feel for those of you who feel worried about lay-offs. I hope it will not come to that. In the meantime, enjoy every minute you possibly can at work. Enjoy the company of your collegues.

[damo]

Hi all,

I believe this is good news for all you skeptics out there: http://www.globeandmail.com/servlet/GIS.Servlets.HTMLTemplate?current_row=1&amp;tf=tgam/search/tgam/SearchFullStory.html&amp;cf=tgam/search/tgam/SearchFullStory.cfg&amp;configFileLoc=tgam/config&amp;encoded_keywords=air+canada+onex&amp;option=&amp;st art_row=1&amp;start_row_offset1=&amp;num_rows=1&amp;search_res ults_start=1&amp;query=air+canada+onex

The last two paragraphs should be heartening. On the AEF site it is also clear that IFS is not the department with excess personnel. Pax agents and the Ramp appear to be the ones under the gun this time. So everybody relax, wait for the Summer sked and prepare for an awesome summer of wonderful flying.

damo

[Peanut]

I agree with Damo (I haven't yet read the article though).
We do not yet seem to be in a serious overstaffed situation. Perhaps we can deal with any surplus with a few leaves of absence, word has it the company is considering more voluntary severence packages. Also, apparently our newly signed contract has a no layoff clause that can only be broken if a catastrophic event causes us to have to ground a large number of aircraft. Air Canada's financial activities have not been those of a company about to seek bankruptcy protection...so let's just sit tight and weather the storm...