Air Canada today announced that it has reached
an agreement with the CAW on voluntary workplace programs to mitigate job
reductions. The agreement on voluntary programs, building on a tentative
agreement on worksharing reached October 21, is expected to result in
significant cost reductions. The programs include leave of absence, job and
work sharing programs and a special retirement incentive severance plan. The
agreement takes immediate effect with savings to be realized beginning with
the first pay period of January 2002.
“This agreement demonstrates what can be achieved when management and
unions work together to be part of the solution,” said Calin Rovinescu,
Executive Vice President Corporate Development and Strategy. “We are confident
these voluntary workplace programs will meet with success. While we still have
further work to do in order to reduce our customer sales and service costs in
this difficult environment, I am pleased at this positive step to address
The programs reduce scheduled hours of work for all Customer Sales and
Service agents represented by the CAW for a 26 week period, subject to
extension. The Workshare Program requires approval from Human Resources
Development Canada (HRDC) for compensation of the reduced hours through the
Employment Insurance (EI) Workshare Program.
The Canadian Auto Workers (CAW) locals 2213 and 1990 represent
approximately 6600 Air Canada customer sales and service agents at airports
and call centres in Canada.