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days until our Collective Agreement expires, we are preparing, we are united and we will make change.

ADCP Newsletter – Volume 1 – Fall 2024

Lisa Raymond on December 17, 2024

Welcome to the First Edition of the Airline Division Council of Presidents’ Newsletter!

Dear Members of the Airline Division,

We are thrilled to introduce the inaugural edition of our Airline Division Council of Presidents (ADCP) newsletter, a new platform designed to keep you informed, engaged, and connected. This newsletter marks the start of a new chapter in how we communicate with you—our valued members across multiple airlines. As proud members of CUPE’s Airline Division, our strength lies in solidarity. Through this publication, we’ll provide updates on key initiatives, recent victories, upcoming events, and important issues affecting us all.

Please feel free to share comments with your Local or Component Officers, and any suggestions on what you’d like to see.

Wishing you all an excellent Holiday ahead, great rest and amazing flying!

CLICK HERE TO VIEW THE NEWSLETTER

CLIQUEZ ICI POUR VOIR LE BULLETIN D’INFORMATION

In Solidarity,

Wesley Lesosky
President, Air Canada Component of CUPE

YMPE. What is it and why does it matter to you?

Lisa Raymond on December 14, 2024

NOTE: We suggest that members read this bulletin in its entirety.  The future is unpredictable, but understanding the changes happening today helps us to plan for what may appear in the horizon.  This bulletin will focus mainly on the legacy Defined Benefit (DB) plan, and in part the Defined Benefit component of the Hybrid plan.

Legacy DB plan applies to members hired before November 7, 2011.

Hybrid plan applies to members hired at Mainline and Rouge on or after November 7, 2011.

Dear members,

This bulletin is to explain what the YMPE is and how it is applied to our pension plan.

What is the YMPE?
YMPE stands for Year’s Maximum Pensionable Earnings.  This is set by the federal government every year.
The YMPE is calculated each year based on the average wage growth in Canada.

How does the YMPE apply to our pension?
The YMPE is used in two ways:

  1. It is used in determining the amount you contribute into your pension plan.

And,

  1. It is used in the pension formula to calculate the pension benefits you would receive upon retirement.

What is the YMPE amount currently?
Currently, the YMPE is $68,500 and will increase to $71,300 in 2025.

In 2019, it was $57,400.  The YMPE grew by $13,900 in 6 years.  If the past growth rate in the last 6 years is the same for the next couple of years, and the YMPE grows by around $9,000*, then the YMPE will be just over $80,000.  This will reach the same number as the pensionable earnings cap of $80,000.  (Currently, pensionable earnings are capped at $80,000.  Which means any earnings above $80,000, are not pensionable.)

*The future growth of the YMPE is not guaranteed to grow at the same rate as it has done in the past.  We are simply comparing the growth of the YMPE in the last 6 years and speculating on how it may keep on growing in the future.

How a higher increase of the YMPE may affect your pension?
Higher YMPE = Lower Contribution Rates

A higher increase of the YMPE would decrease the amount one contributes into their pension plan.

Example: YMPE at $54,900

In 2016, the YMPE was $54,900.

A member with pensionable earnings/compensation of $60,000, would be contributing $2,776.50 to their pension plan. (The contribution formula is 4.5% of your compensation up to the YMPE plus 6% of your compensation above the YMPE.)

Using the same YMPE, but with pensionable earnings of $80,000, the member will be contributing $3,976.50.

Now, if for our example, we are using a YMPE set at $80,000, the member would be contributing $3,600 into their plan.  That is $376.50 less in contributions compared to when the YMPE was at the lower amount of $54,900.

The reason for this lower contribution amount is due to the 6% percentage rate above the YMPE will no longer be applied.  If in the future the YMPE will be equal or higher than the pensionable earnings cap of $80,000, all members will be contributing at the lower rate of 4.5%.

What about pension benefits at retirement?
As reference, we will use an example found in the Employee Pension Booklet, which can be accessed on the Alight website in HR Connex.

Example 1):

Member A
Years of allowable service: 35
Average Annual Compensation (best consecutive 36 months) of $60,000
Average YMPE: $52,400
Annual pension at age 65: $37,415**
**p.10 of the Employee Pension Booklet
(The normal retirement formula is: [1.75% X average annual compensation up to average YMPE X allowable service] PLUS [2% X average annual compensation above average YMPE X allowable service].  This retirement formula can be found on p. 9 of the Employee Pension Booklet)

Example 2): The member has higher earnings, but the YMPE is the same as for member A

Member B
Years of allowable service: 35
Average Annual Compensation: $80,000
Average YMPE: $52,400
Annual pension at age 65: $51,415

Example 3): In this example, the YMPE is equal to the earnings cap of $80,000, and the member has pensionable earnings of $85,000

Member C
Years of allowable service: 35
Average Annual Compensation: $85,000
Average YMPE: $80,000
Annual pension at age 65: $49,000
Why does Member C, who earned $5,000 more a year compared to Member B, will receive almost $2,400 less at retirement?  First, we have a pensionable earnings cap of $80,000, therefore, anything earned above the cap is non-pensionable.  Second, the pension formula calculates earnings below the YMPE at a rate of 1.75% and earnings above the YMPE at 2%.  If the average YMPE is $80,000, then the average annual compensation will only be calculated at a rate of 1.75%.

Retirement Formula for Hybrid members at Mainline and Rouge:
Even though this bulletin is mainly focused on the legacy DB plan, for members hired on or after November 7, 2011, who are on the Hybrid plan either at Mainline or Rouge, an ever-increasing YMPE will also have a negative impact on retirement benefits.

The Hybrid plan for both Mainline and Rouge members consist of a Defined Benefit component and Defined Contribution component.

For the Defined Benefit component, the normal retirement formula uses two different percentage rates below and above the YMPE.  (0.595% below the average YMPE and 1% above the average YMPE.)

If in the future, the YMPE is either equal or higher to the pensionable earnings cap of $80,000, then every member on the Hybrid plan who will retire, will have their average annual compensation calculated at the lower rate of 0.595%.  Which will entail a lower pension benefit amount.

Conclusion:
Even if pensionable earnings increase substantially in the next few years, an ever-increasing higher rate for the YMPE, will mean lower pension contributions and lower pension retirement benefits.

As stated previously, we do not know by how much or how fast the YMPE may grow in the future.  This bulletin is speculative and used YMPE rates for example purposes only.  Our purpose to sharing these hypothetical scenarios is to highlight what may happen, if the YMPE continues to grow as it has been in the last six years.  We believe members should be aware how a higher YMPE, may affect their retirement.  Especially since we have seen the prices of goods and services grow in the last few years due to inflation and that our pension plan is not indexed.

Your Component Pension Committee recognizes the detriment of the growing YMPE and effectively the lower pensionable contributions and are in communication with your Component regarding the concerns.

Whether you will be working this holiday season or be at home with family and friends, we would like the time to wish you all a Merry Christmas, Happy Holidays and best wishes for the new year.

Safe travels,

Your Component Pension Committee

Marc Roumy (Chairperson)
Henly Larden (Member)
Caroline Lozeau Gelinas (Member)
Stefanie Falotico (Rouge Member)

Bargaining Committee Update – 6

Lisa Raymond on December 13, 2024

As most are now aware, the Air Canada Component of CUPE has served Air Canada with notice to bargain and has just completed two days of meetings with the employer in Toronto. We opened bargaining and had two days scheduled, December 11 and 12 to commence the bargaining process.

Over the past 18 months your Bargaining Committee has been deeply engaged in preparations for our upcoming negotiations. We have developed a package of strong bargaining proposals based on membership feedback and survey results, input from our subject matter experts including Component and Local committees, legal counsel, and CUPE National specialists.

Your Bargaining Committee proposals reflect the direction provided by the membership with a focus on the top three priorities identified in the initial bargaining survey: pay, benefits, and pensions. In addition to our Unpaid Work Won’t Fly Campaign – a message that has resonated with members, government, and the public – we have a range of proposals designed to address the various challenges and inequities evident in the current Collective Agreement.

On day one, the Component President delivered the following message to the employer to illustrate how our members are feeling and reinforce the need for improvements:

Hello,

Thanks for meeting with us today. I can speak for our 10,000 members and say we look forward to getting to work on an industry leading Collective Agreement renewal. A lot has changed in the past ten years. To put things in perspective, the last time we negotiated a Collective Agreement, Barack Obama was just halfway through his second term. The last time we negotiated a Collective Agreement, Air Canada’s annual revenue for that year was $13 billion, while last year, the company had revenues of $21 billion. Much has changed over the past ten unprecedented years, and today our members find themselves in a position of hardship, frustration and living pay cheque to pay cheque.

The pandemic and ensuing economic fallout rocked our industry to the core. Many of our members are still trying to dig themselves out of the hole that the pandemic put them in, financially and emotionally. We are encouraged to see Air Canada rebound and regain its financial health. Unfortunately, our members cannot say the same.

Of course, if losing their jobs wasn’t bad enough, the inflation crisis meeting our members on the other side of the pandemic has been the icing on the cake. Our members have seen their purchasing power plummet, and their wages fall short of what they need just to get by. New hires know home ownership is no longer a reality while working for this company, while our older members are wondering if their pension will allow them to retire with dignity. The reality of having no choice but to work two or three jobs is, tragically, becoming the new normal.

We need to look at what the Companies’ responses were to these life altering circumstances. During Covid, Air Canada and Air Canada Rouge laid off the vast majority of our membership, and in doing so, they cut them off from employer benefits, during a pandemic, where the Union tried to find ways to offer benefits to our members to allow them to rest easier in the event that they sustained illness.  They lost pensionable service, wage progression, had to pay back vacation they were previously awarded and more.  Even though the Company had the opportunity to keep members whole through the CEWS program, just like most airlines in the country.  When Inflation skyrocketed, the Union tried to negotiate increases to help our members stay afloat. What we received in return was a discussion of concessions and unrealistic demands from Air Canada. Never did Air Canada take into consideration the financial wellbeing of their employees; instead, they took the opportunity to seek concessions from our members.

This has been a long ten years; some might say the longest ten years this industry has ever seen. Our members have been waiting for this opportunity for a long time, to restore their purchasing power and bring dignity back to this profession. And we will not be letting it go to waste. Our members are committed to having their collective voice heard and their issues brought to the forefront for everyone to hear. The Air Canada Component Bargaining Committee with the support from CUPE National staff, will be their conduit. The Union’s mobilization efforts will be loud and forward facing during this round and we will be providing our members with regular updates of detailed information from the table.

Our hope and our goal is to get a deal done with the least impact to our members and the Company, but we will be steadfast in taking whatever path is needed to ensure our members get what they need and deserve in their next contract.

As noted in the Service Director News – November 2024 Edition:

The Elevate the Customer Experience team sends out Customer Satisfaction surveys to evaluate all phases of the customer journey, from check-in to in-flight experience to baggage claim. 

The customer journey diagram below highlights that In Flight Service, ranging from 45 minutes to 16 hours, is the longest of all the touchpoints during the customer journey.

When we rank the key factors that drive customer satisfaction all of which play a role determining our Net Promoter Score, we see “In Flight Staff” as top factor.

It leaves little doubt as to the importance Cabin Crew plays in the service experiences of our customers and the important role you play in helping your crew consistently deliver on our service promise. 

Now is the time to invest in your crew, change our jobs into careers, and make meaningful changes to show our members they are truly valued, compensated well for what they do, and will have a solid pension to go into retirement with.

Our members are the face of Air Canada and Air Canada Rouge. They are the frontline of service and support for the flying public. This contract needs to recognize and reflect the value and the importance of flight attendants for this company, and how much they are valued and needed for this airline to get back to being a world leader.

We look forward to productive conversations and meaningful dialogue this round.

As proposals are always fluid, we are not able to provide language until we come to a tentative agreement that we are willing to move forward to the membership for ratification. The following list represents an overview of some of the key issues we will be addressing at the bargaining table.  PLEASE NOTE: This list is NOT in order of priority, it is in chronological order based on general articles of the Collective Agreement.

  •  Article 2 – Scope
  • Article 5 – Ground Duty – Pre/Post Duty Period
  • Article 5 – Underpayments/Overpayments
  • Article 5 – Wage Increases & Rates of Pay
  • Article 5 – Night Flight Premium
  • Article 6 – Deadheading Credits
  • Article 6 – Training Credits
  • Article 6 – Training Credits & Flight Time Limitations
  • Article 6.02.02 – Duty Periods 30 Minute and Extended Pick Ups
  • Article 6.03 – Four (4) Hour Credit for Reporting Even if No Flight Operated
  • Article 6.03 – Unpaid Work
  • Article 7 – Per Diems and Work Allowances
  • Article 8 – Vacation Credits and MML Reserve and Blockholders
  • Article 8 – Vacation Entitlements
  • Article 9 – Sick Days
  • Article 9 – Sick Leave and Accumulation
  • Article 10 – Personal Time Bank
  • Article 17 – Reduction of Forces/layoff and Wage Freeze
  • Article 19 – Hotels
  • Article 19.05 – Prone Rest
  • Article 20.01 – Health & Safety Flight Releases Charged to Company
  • Article 21 – Hotels
  • Article 21 – Union Review of Onboard Services
  • Article 22 – Improved Benefits
  • Article 23.03 – Introduction of New Aircraft
  • LOU 28 – Onboard Crew Rest
  • LOU 30 – Pension
  • LOU 44 – Grievance Procedure
  • LOU 51 – B767 Crew Rest Seats and Crew Rest
  • LOU 59 – Flow Through
  • LOU 59.07 – Flow Through Wage Freeze
  • LOU 60.04 – Crew Complement
  • LOU 61 – A330 and A321 XLR Crew Rest Seats
  • New LOU – Deadhead Seating Priority
  • New LOU – Dedicated Crew Seats All Flights
  • New LOU – Jumpseat Agreement – Reciprocal
  • B4.02.02.04 – Language Requirements
  • B5.02.01 – Duty Periods 30 Minute and Extended Pick Ups
  • B6 – Reassignment
  • B6.03.05 – Reassignment Timeframe
  • B8 – AM/PM Reserve
  • B8 – Reserve Days Off Protection
  • New Appendix – Implementation Timeline 2025 CA
  • New MOA – Air Canada Rouge – Folding into Mainline
  • New MOA – Truth and Reconciliation

**LOU = Letter of Understanding
**MOA = Memorandum of Agreement

The Union and employer have dates set in January 2025 to meet in Montreal and Toronto where we will continue bargaining. We will report back at that time.

Your Bargaining Committee is committed to fostering open communication, education, and engagement. The exercise of bargaining is  collective and each of us has a role to play. This week was the start of a very important process – one that will affect every one of us. We are encouraged by the interest and energy shown by the membership thus far.

Together we will achieve the Collective Agreement we deserve.

In Solidarity,

Your Bargaining Committee

Mainline Hybrid Pension Ambassadors, Thank you!

Lisa Raymond on December 12, 2024

The Pension Committee would like to thank all of the members who submitted their name to be Hybrid Pension Ambassadors.

Your response has been overwhelming, and all positions have been filled in record time. No more positions are available.

For all members who responded, you will receive a response and once a list has been finalized, it will be sent to the Company’s Pension department.

Thank you again to all of you who have stepped up to help educate your fellow colleagues.

Safe travels,

Your Component Pension Committee

Marc Roumy (Chairperson)
Henly Larden (Member)
Caroline Lozeau Gelinas (Member)
Stefanie Falotico (Rouge Member)

January 2025 Designated Article/LOU Long-Range Flying, Augmented Routes, Onboard Rest Times

Lisa Raymond on December 11, 2024

(This applies to AC Mainline only)

Please click here to see the Company’s January 2025 block month planned duties chart that outlines routes and their planned long-range extension (i.e. B14, L18, L22A/L22B) including any routes that have been augmented to a higher extension from December 15, 2024 to January 8, 2025 inclusive (**Holiday Augments). (n.b. these charts can be found in Aeronet (In-Flight Service/Crew Scheduling & Planning/Bidding Tools & Information/Duty Summary). Our bulletin published last month can be viewed by clicking HERE.

What does “augmenting” mean?
There are times when Air Canada may change the designation of a route to a higher designation. This may be seen during holiday periods in December and January (known as “Holiday Augments”). For example, a route that is normally designated as  B14, may be changed to L18, L18 to L22A, or L22A to L22B. This process is known as “augmenting”.

When a route is augmented, the rules of that higher designation apply i.e. longer onboard crew rest, longer crew rest after returning to home base, longer duty period limitations, and in some cases additional crew members. Once a decision has been made to augment a route, LOU 22 prevents Air Canada from reversing its decision or performing a further augment if Cabin Personnel have already been scheduled to operate the route. Air Canada must publish all routes which have been augmented when PBS bidding opens so that crew members are aware and can bid accordingly.

The routes designated as B14, LOU18, LOU22A, or LOU22B for Dec 2024 are as follows:

B14 YVR-ICN-YVR (789) – –
LOU 18 YVR-PVG-YVR (789) YYZ-NRT-YYZ (77P) YUL-NRT-YUL (77P)
  YVR-PEK-YVR (789)    
LOU 22A YVR-AKL-YVR (789) YYZ-DXB-YYZ (789) –
  YVR-BNE-YVR (789) YYZ-HND-YYZ (773) –
  YVR-HKG-YVR (788/789) YYZ-ICN-YYZ (788/789) –
LOU 22B YVR-BKK-YVR (789) YYZ-BOM (789) YUL-DEL-YUL (789)
  YVR-DXB-YVR (789) YYZ-DEL-YYZ (772) –
  YVR-SIN-YVR (789) – –
  YVR-SYD-YVR (789/772) – –

The routes that have been augmented to a higher long-range extension (“Holiday Augments”) from December 15, 2024 to January 8, 2025 inclusive, are:

LOU 22A – YYZ-NRT-YYZ (77P) YUL-NRT-YUL (77P)
LOU 22B YVR-AKL-YVR (789) YYZ-DXB-YYZ (789) –
  YVR-BNE-YVR (789) YYZ-ICN-YYZ (788/789) –

Onboard rest times are as follows:

B14: flight times of 11:30 and greater 2:00 hours
LOU18: duty day up to 14:59
duty day 15:00 and greater		 2:30 hours minimum
4:00 hours
LOU22A: duty day up to 17:10
duty day 17:11 and greater		 4:00 hours
4:30 hours
LOU22B: duty day up to 18:45
duty day 18:46 and greater		 5:00 hours
5:30 hours

Please note:

  • Once bidding is closed, the Company cannot for any reason change the designated Article/LOU.
  • The designation of a pairing (B14, L18, L22A, L22B) shall be based on the duration of the longest leg within that pairing. (L60.04.05 of the collective agreement)
  • All the conditions/rules (such as onboard rest, duty day limitations, crew complement, layover rest period etc.) of the designated Article/LOU apply to the entire pairing.
  • There are two possible onboard rest periods for LOU18, LOU22A, and LOU 22B flights as seen above.  The duty day for each flight will determine the onboard rest period.
  • Meal breaks are to be taken separately from the on-board crew rest.
  • The service specifications may need to be modified for crew to obtain their full contractual rest times.  If service modifications are required, the SD should submit an eOBR.  **Please share the eOBR with your local union office. If there is a manager onboard, report this service modification to them.  If you are told anything different in respect to contractual crew rest by an Air Canada manager, please share this information with your local union.
  • Members are encouraged to verify the designated article or LOU each month.

We have also included the link to the previously published long-range flying chart for quick reference.  (CLICK HERE)

In Solidarity,

Your Component Grievance Committee

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