Govt running out of time to prevent strike

TORONTO: Canada is running out of time to prevent a strike that could disrupt Air Canada operations, with Parliament on a week-long break and a Thursday strike deadline looming.

Canada's Conservative government has twice drafted back-to-work legislation to halt strikes at Air Canada, the country's largest airline, although union and management agreed deals before either set of legislation passed.

Even if Parliament returns ahead of schedule, parliamentary experts say it would almost certainly take until Saturday, or perhaps even Monday, for legislation to pass.

"I am not optimistic this time. I think we are going to see some action," said Robert Kokonis, president and managing director of AirTrav Inc, an independent airline consulting company.

Air Canada's 6,800 flight attendants on Sunday rejected a tentative labour contract reached between the airline and their union, the Canadian Union of Public Employees (CUPE), and the union gave strike notice for Thursday.

The government says a strike would be unacceptable, given the country's "fragile economy."

But Parliament is closed for the week, and deputies usually receive 48 hours notice of an early recall. The strike deadline is already less than 48 hours away.

The flight attendants are willing to resume talks, the union said in a release on Tuesday.

"We are ready to return to the table and find a way to keep our members and the public flying with a fair collective agreement," said Jeff Taylor, head of CUPE's Air Canada component.

Air Canada, for its part, has made clear that it's wary of further talks, given that union members have twice rejected contracts that the union itself recommended.

"We have to question the legitimacy of the union's representation and the entire collective bargaining process. CUPE leadership have failed to secure ratification of two separate tentative agreements," a spokeswoman said.

Labour Minister Lisa Raitt said last month that a strike could strand as many as 65,000 passengers on its first day and analysts have said a work stoppage by flight attendants would virtually ground the airline.

Flight attendants at Chorus Aviation's Jazz, which operates short-haul Air Canada Express-branded flights under contract, belong to a separate union.

Air Canada says it will operate on a partial schedule if there is a strike, using Air Canada Express and regional partner airlines.

The airline's main domestic competitor, WestJet Airlines Ltd, will add extra flights, it said in a release on Tuesday.

Kokonis said WestJet and closely-held Porter Airlines will get "longer-term traction" from this strike threat, as passengers opt for more predictable airlines.

Toronto's Pearson airport, Air Canada's main travel hub, has faced other traffic delays due to job action by disgruntled security screening staff.

Garda World Security Corp, the employer of the screening staff, said it had suspended 74 officers and commenced legal action against them for refusing to honour a Canadian Industrial Relations Board injection to stop their work slowdown.

It said the "vast majority" of its 1,600 screening officers at Pearson were performing their jobs.

Shares of Air Canada closed down 2.1 percent at C$1.38 on the Toronto Stock Exchange. WestJet shares were up 14 Canadian cents at C$13.04.

Copyright Reuters, 2011