Canadian Labour Reporter

November 23, 2015

Canadian Labour Reporter is the trusted source of information for labour relations professionals. Published weekly, it features news, details on collective agreements and arbitration summaries to help you stay on top of the changing landscape.

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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 subcon- tractor 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 in- house 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 sub- contracting work to international maintenance providers. Air Canada argued it has re- spected 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 rep- resenting the International Asso- ciation of Machinists and Aero- space 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 air- craft machinists, mechanics, bag- gage 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 deci- sion." Pask said the decision itself was significant in its unambiguous re- affirmation the airline has an ob- ligation 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 posi- tion, that requires some signifi- cant 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 collabora- tion between all of the parties in- volved 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." 7 Canadian HR Reporter, a Thomson Reuters business 2015 CANADIAN LABOUR REPORTER NEWS < from pg. 1 Compliance will require collaboration: IAMAW Photo: Beawiharta Beawiharta (Reuters) IAMAW — which represents more than 21,2000 Air Canada employees — said it expects the airline to include unions as it takes action to bring itself into compliance with the Public Participation Act.

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