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DHL: NEW CFO APPOINTMENTFDX: TRADING UPDATE ON THE WAY TSLA: ON THE MENDGM: TECH STARTUP LISTINGDSV: NEW HIGH TARGET CHRW: BOLT-ON DEAL TIMEDHL: GO GREENDSV: BULLISH DSV: NOTE TO INVESTORSKO: TAX FIGHTDSV: STILL 'OVERWEIGHT'WTC: HAMMEREDWTC: MOUNTING TROUBLEWTC: ANOTHER DIFFICULT WEEK
DHL: NEW CFO APPOINTMENTFDX: TRADING UPDATE ON THE WAY TSLA: ON THE MENDGM: TECH STARTUP LISTINGDSV: NEW HIGH TARGET CHRW: BOLT-ON DEAL TIMEDHL: GO GREENDSV: BULLISH DSV: NOTE TO INVESTORSKO: TAX FIGHTDSV: STILL 'OVERWEIGHT'WTC: HAMMEREDWTC: MOUNTING TROUBLEWTC: ANOTHER DIFFICULT WEEK
Some 6,000 tonnes of Air Canada Cargo volumes face uncertainty due to a cessation of operations in 72 hours following a lockout of its flight attendants represented by the Canadian Union of Public Employees (CUPE).
CUPE announced that after nine months “of [Air Canada] delaying at the bargaining table on the fundamental issues of unpaid work and poverty wages” it received a 99.7% strike mandate from its membership.
Air Canada responded today by issuing a lockout notice “to mitigate the impact on customers impact and allow an orderly shutdown”.
Its flights will be gradually suspended over the next 72 hours, and Air Canada Express flights are not affected. The first flights will be cancelled on 14 August and by 16 August there will be a complete cessation of flying by Air Canada.
With flights grounded, the bulk of Air Canada Cargo’s activity – which predominantly flies bellyhold – will find itself grounded.
Precise volumes are hard to come by, but following a post-Covid push to up its freighter fleet, last year saw a u-turn from the Canadian flag carrier as it reduced its all-cargo aircraft numbers from eight to six, upping reliance on its fleet of some 250 passenger aircraft. According to sources, an average 24-hour window sees the carrier move approximately 2,000 tonnes across bellyhold and full-freighter capacity.
“By optimally positioning aircraft and crews ahead of a possible stoppage, Air Canada will be able to provide required routine maintenance and more quickly restore regular service,” it assured.
“We regret the impact a disruption will have on our customers, our stakeholders and the communities we serve. However, the disappointing conduct of CUPE’s negotiators and the union’s stated intention to launch a strike puts us in a position where our only responsible course of action is to provide certainty by implementing an orderly suspension of Air Canada’s and Air Canada Rouge’s operations,” said Michael Rousseau, president and CEO of Air Canada.
Wesley Lesosky, president of the Air Canada component of CUPE, said: “There is very clear path for Air Canada to avoid job action: pay your workers when they’re on the clock, and pay them a wage that allows them to live and work in dignity. That isn’t an unreasonable ask.”
According to Mr Lesoksy, Air Canada flight attendants have taken a 9% cut to their real wages due to inflation over the course of their last contract since 2015, and the latest offer from the airline “does not even keep up with inflation”.
On 11 August, Air Canada proposed that the parties retain a third-party, independent arbitrator “to assist in addressing outstanding issues to develop a new tentative agreement through binding arbitration”, which CUPE rejected.
The airline has now requested immediate intervention by the Canadian government to direct binding interest arbitration before a work stoppage becomes effective.
“Recent government interventions in rail, port and airline labour disruptions in Canada provide a proven precedent,” it said.
Mr Rousseau concluded: “While we remain available for discussions with CUPE, we have requested government-directed arbitration as we now view it as the only certain avenue to bring closure to bargaining and mitigate the impact on travellers, business and the Canadian economy.”
Mr Lesosky said: “Arbitrators rely on precedent and the status quo to make their determinations. But Air Canada flight attendants are trying to break the status quo by ending the historic abuse of unpaid work in this industry.
“Air Canada wants an arbitrator to do their dirty work for them to keep the status quo intact.”
At the time of publication, Air Canada had not responded to The Loadstar’s enquiry on the impact to cargo operations.
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