MOU 3 – Restructuring of Air Canada – CCAA June 18, 2004
MOU 3
MOS – Additions / Amendments June 18, 2004
MOA – PBS – June 18, 2004
MOU – Revised Schedule 1
MEMORANDUM OF SETTLEMENT
between
Canadian Union of Public Employees, Airline Division
Air Canada Component (the “Union”)
And
Air Canada (the “Company”)
The Company and the Union agree to the following:
1. Add to Collective Agreement Article L.28.01 a Note as follows:
“Note: This clause shall apply to any flight leg of more than 8 hours. The Hotel provision of 28.02 below does not apply.”
Amend L.28.03 as follows:
“The above mentioned provisions will apply for the Toronto-Barbados / Montreal-Vancouver flights in the event that they operate as an overnight turnaround.”
The title of LOU 28 is changed from “Port of Spain” to “Crew Breaks”.
2. The Company agrees to review the 123 Manual in collaboration with the Union to resolve conflicts with the Collective Agreement prior to December 31st, 2004.
3. The Company agrees to provide the Component President and the Union Co-Chair of the Policy Committee with copies of the following information on Bogota by June 18th, 2004, and for future destinations prior to the selection of the hotel:
(a) any Transport Canada security assessment provided to the Company, where permitted
(b) any Air Canada Corporate Security assessment
(c) any Air Canada Corporate Security assessment of the hotel
The Company and the Union agree to meet to discuss any contingency plan affecting cabin personnel.
4. The parties agree to discuss and resolve the issues raised in Pamela Sachs’ letter to Brad Moore dated October 27th, 2003 at the first UMHQ subsequent to ratification of the MOU dated May 18th, 2004.
5. The Company and the Union agree to meet by June 2005 to review the results of the 2004 VSP program and discuss possible redesign as required.
6. The Company and the Union agree that Management and Union OSH representatives will not share office space. All remaining payment of wage issues continue in current CIRB process
7. The Calculation (16,160 X number of employees who exit on VSP) contained on page 2 of the MOU dated May 18th, 2004 is amended as follows:
“(22,000 X number of employees who exit on VSP)”.
8. The Calculation (3950 X net new hires in the first year of their employment) contained on page 2 of the MOU dated May 18th, 2004, is amended as follows:
“(6,640 X net new hires in the first year of their employment)”
9. Effective with the first day of the July 2004 block month, three steps are added to the bottom of the mainline flight attendant wage grid. For 0-12 months of service the hourly rate will be $21.76, for 13-18 months of service the hourly rate will be $22.76 and for 19-24 months of service the hourly rate will be $23.76. All remaining steps in the grid will be reduced by 10% as shown on the Revised Schedule 1, dated June 18, 2004, attached. The $21.76 wage rate will not be subject to increase prior to the wage reopener of June 1, 2006.
- Ø The placement of existing mainline employees on the new mainline grid will be increased by two years.
- Ø The placement of existing ZIP employees on the new mainline grid will be increased by one year.
- Ø The placement of employees currently on initial training course on the new mainline grid will be increased by one year.
Agreed in Toronto this 18th day of June 2004.
_________________________ __________________
Steve Smith Pamela Sachs
Senior Vice President President
Customer Experience, Air Canada CUPE, Air Canada Component
Memorandum of Agreement
Between
Canadian Union of Public Employees, Airline Division
Air Canada Component (the “Union”)
And
Air Canada (the “Company”)
RE: Preferential Bidding System
WHEREAS the parties agreed to terminate the November 1, 2001 Collective Agreement on May 31, 2003, and to replace it with a new Collective Agreement effective June 1, 2003 (the June 1, 2003 Collective Agreement) that consists of the terms of the November 1, 2001 Collective Agreement as modified by the June 1, 2003 Memorandum of Understanding;
AND WHEREAS one of the proposed Collective Agreement changes in the June 1, 2003 Collective Agreement included the implementation of a Preferential Bidding System;
AND WHEREAS as at May 18, 2004 a Preferential Bidding System was not yet implemented;
AND WHEREAS the parties agreed to further amend the Collective Agreement on May 18, 2004, including a ten (10) percent wage rate cut no earlier than any other mainline employee group;
AND WHEREAS the parties agreed to negotiate a wage rate adjustment, (including retroactive adjustments) should the savings achieved be greater or less than $14.9 million (including benefits at 12.3%) on an annual basis when PBS is fully implemented;
NOW THEREFORE the Company and the Union agree to the following as obligations that must be met regarding the implementation and audit of the Preferential Bidding System:
1. Vendor: Air Canada accepts the committee’s recommended vendor for PBS.
2. Implementation Deadline: Should the Company fail to implement PBS by July 1, 2005 the wage rate will be increased by 0.5 % per month thereafter to a maximum of 10% increase until PBS is fully implemented. Should a delay be caused by factors beyond the Company’s control, the Union and the Company will meet to resolve the matter, failing which the matter shall be resolved in accordance with the process outlined in #6 below.
3. PBS Committee: The committee selected to evaluate and agree on the new PBS system will meet at least monthly until the system is fully implemented.
4. UMHQ: the Company and the Component Executive will meet on a quarterly basis to review, analyze and oversee the implementation of the system. The quarters shall be Jan-Mar; Apr-June; July-Sept; Oct- Dec.
5. Information to Union: In order to maximize the benefit of the UMHQ meetings regarding PBS, the Company will provide the Union with the following information for each quarter. The information will be provided within 30 days of the previous quarter, in electronic format if requested:
a. All pairing information.
b. The total number of inactive employees, active blockholders and reserves that the company required by base.
c. The number of flight-attendants and in-charges required at each base.
d. The number of flying hours per classification at each base.
e. The number of productive and unproductive burden hours per classification on a per capita basis at each base.
f. The number of projected increases or reductions in flight attendants and in-charges at each base for the current quarter.
g. Any other information required by the union relevant to the implementation and generation of PBS.
6. Union Input (UMHQ): The Union will be given the ability to identify weaknesses in the implementation of PBS and recommend solutions that will maximize the efficiency of the system and assist in improving productivity / cost efficiencies in accordance with the principles outlined in the Collective Agreement. Should the Company fail to meet with the Union, provide the information outlined in 5 above, disagree with the weakn
esses identified by the Union and/or the solutions that are recommended, or the parties fail to agree on the necessary Collective Agreement language on a timely basis, the matter shall be referred to mediation/arbitration before George W. Adams or Marty Teplitsky.
7. Financial Analysis: The Union shall be entitled to retain financial advisors for any matter contained in this agreement, the reasonable costs of which shall be borne by the Company.
8. Open Flying: B7 will be amended following the implementation of PBS.
a. The reference to crewing by load in the B7.01 note is deleted.
b. The award sequence in B7.04 will be amended and reserve will be fourth in the award sequence:
1. Open Flying Award
2. Reassignment
3. Voluntary Extension
4. Reserve
5. Deadhead Crews
6. Draft
c. If (a) and (b) do not produce savings as intended these provisions can be revisited upon mutual agreement.
9. The twelve month period used for the audit and referred to in the MOU of May 18, 2004 will be determined by CUPE.
10. The percentage adjustment will be calculated in accordance with Appendix 1.
Signed this 18th day of June, 2004.
________________________ ________________________
Steve Smith Pamela Sachs
Senior Vice President President
Customer Experience, Air Canada CUPE, Air Canada Component
Memorandum of Understanding
Revised Schedule 1
Amend Article 5.02
Years of Service Effective July 1, 2004
0-12 months $21.76
13-18 months $22.76
19-24 months $23.76
25-30 months $24.76
31-36 months $26.59
37-42 months $31.17
43-48 months $33.05
49-54 months $34.12
55-60 months $35.29
6th year $38.06
7th year $39.87
8th year $41.65
9th year $43.75
10th year $45.71
Amend Article 5.03
Effective July 1, 2004
I (1st year) $45.99
II (2nd year) $46.92
III (3rd year) $49.33
Amend Article 5.04
Effective July 1, 2004
I (1st year) $46.55
II (2nd year) $50.24
III (3rd year) $52.94
Amend Article 5.04.01
Effective July 1, 2004
$54.92
Amend Article 5.04.02
Effective July 1, 2004
$60.82
Amend Article 5.05
Effective July 1, 2004