Air Canada customer service and sales staff are threatening a walk out on Monday, June 13 if the unions can’t come to an agreement with the airline over pension issues.
Under the airline’s proposal, new hires would receive DC pension plans instead of the DB plans employees currently earn.
Air Canada spokesman Peter Fitzpatrick said the pensions proposal is “a common approach that other companies use” and that existing and retired employees wouldn’t be affected by the change.
Air Canada was forced into creditor protection from April 2003 to September 2004, partly due to cost of dealing with the company’s pension deficit. Air Canada employee unions agreed to concessions worth billions to help the company stay a float, but they insisted their DB pension plans be saved.
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As of January 1, the company’s pension deficit was $2.1 billion.
The CAW, which represents 3,800 Air Canada customer service and airport workers, could serve 72 hours notice today for a strike beginning at midnight June 13.
CAW president Ken Lewenza said the union would rather reach an agreement with Air Canada than go on strike.