Air Canada's flight attendants have secured pay for pre-flight duties following a successful negotiation with the airline. This outcome concludes a strike that disrupted numerous flights and brings long-sought changes to employees' working conditions.
In a significant development for Air Canada's flight attendants, the airline has proposed a contract that addresses long-standing employee grievances by including compensation for tasks performed before flights take off. This move aims to rectify one of the primary issues voiced by the crew of Canada's largest airline.
The tentative agreement, reached early Tuesday morning after three days of industrial action that disrupted over 2,000 flights, marks an end to the strike. The terms stipulate remuneration for 60 minutes of pre-flight work on narrowbody aircraft and 70 minutes on widebody planes. These proposals await ratification through a union vote, as explained by an official from the Canadian Union of Public Employees.
This new compensation framework starts at 50% of flight attendants' hourly wage in the first year and escalates to 70% by the fourth year, according to union representatives. Jefferies analysts highlighted that after ten years of service, Air Canada flight attendants could earn up to C$63 ($45) per hour or C$41 at its Rouge budget brand for those with shorter tenure.
The newly negotiated terms represent a win for Air Canada's cabin crew who have sought public support throughout their campaign, drawing attention via media outreach and slogans aimed at CEO Michael Rousseau during demonstrations. "Hey hey, Rousseau - unpaid work has got to go," was a rallying cry underscoring their demands.
Originally, Air Canada had offered compensation for 45 minutes on narrowbody jets and 60 minutes on widebodies at half the standard pay rate. The enhanced offer illustrates how negotiations progressed under pressure from both labor representatives and public opinion.
Francois Duflot from Bloomberg Intelligence noted this contract might influence similar negotiations across other Canadian airlines. With WestJet's cabin crew contract expiring at year's end, similar ground-pay discussions are anticipated.
While Air Canada declined direct comment on these proceedings, Mark Nasr, Chief Operations Officer, characterized it as an "industry-leading deal" regarding ground pay in comments made to CBC News.
Nevertheless, Moody’s downgraded Air Canada's outlook from positive to stable due to anticipated rises in wage expenditures impacting profit margins. The company's debt stands rated at Ba2 under current evaluations.
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