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To: Jim Bishop who wrote (93388)10/10/2001 11:35:21 PM
From: Jim Bishop  Read Replies (1) | Respond to of 150070
 
Air Canada's latest layoffs plan blocked

By Allan Dowd

VANCOUVER, British Columbia, Oct 10 (Reuters) - A federal labor panel on Wednesday blocked Air Canada's (Toronto:AC.TO - news) plan to temporarily lay off 1,281 passenger agents, putting the issue to negotiation between the airline and one of its unions.

The Canadian Industrial Relations Board sided with the Canadian Auto Workers union, which argued the cuts announced on Tuesday violated its contract that blocked layoffs at Canada's largest airline before March 27, 2004.

Air Canada said in a statement the labor panel also recognized it needed to cut costs in the wake of the September 11 attacks on the United States and ordered the two sides to continue negotiating the issue.

``Air Canada will continue to pursue all efforts with the union to arrive at a mutually agreeable solution in a timely fashion,'' the company said in a statement.

The union, which represents 8,700 reservations, airport and Aeroplan agents at Air Canada, said it now expected the airline would ``negotiate provisions that will encourage union members to leave voluntarily.''

The issue will be put to a labor arbitration panel if the two sides are not able to reach a decision by October 19, the union said.

The layoffs, which were expected to take effect on October 30, were part of the airlines previously announced plan to lay off some 5,000 workers, or about 12.5 of its 40,000 employee work force.

Air Canada and its regional subsidiaries have cut jobs and grounded planes in response to the slowdown in travel because of the September 11 attacks and weakening of the North American economy.

The no-layoff clause was part of the contract the Canadian Auto Workers negotiated with Air Canada last year after the air carrier took over rival Canadian Airlines.

``While lay-offs are always a regrettable last resort, the impact of the events of September 11 have been devastating to the airline industry and were clearly not contemplated by the (the union) or Air Canada when entering into the collective agreement arrived at in September 2000,'' the company said on Wednesday.

The company earlier said it hoped the layoffs of employees who take reservations and assist with flight check-ins would be temporary and the workers would be recalled would be recalled when the situation improved.

Air Canada has also issued temporary layoff notices for 280 of its 7,413 flight attendants and 1,000 members of the International Association of Machinists and Aerospace Workers.