Air Canada Is Hit by Strike Of Pilots Union ---- As in Northwest Walkout, Past Labor Concessions Are Source of Dispute
MONTREAL -- Air Canada pilots went on strike, disrupting air transportation across Canada and into the U.S. several days into a similar walkout by pilots at Northwest Airlines.</br></br>But Canada's biggest airline and its 2,100 striking pilots weren't far apart in their terms when negotiations broke off shortly before midnight Tuesday. With passengers scrambling for scarce seats on other carriers and the Montreal company losing millions of dollars for every day the strike lasts, some analysts said they expect the stoppage to end within days.</br></br>Spokesmen for Air Canada and its pilots' union said yesterday they were prepared to return to the bargaining table quickly, though further talks hadn't yet been scheduled.</br></br>As with the Northwest Airlines strike in the U.S., the Air Canada dispute stems from labor concessions in the early 1990s. The Air Canada pilots argue that a pay cut they took in 1993, combined with subsequent productivity increases, helped the carrier post a record profit last year. The pilots also claim they are paid 30% to 50% less than pilots for major U.S. carriers.</br></br>Talks broke down late Tuesday night with the pilots seeking a 12% pay increase over two years and the company offering a 9% increase over that period. While the difference amounts to only about seven million Canadian dollars (US$4.5 million) annually, Air Canada officials said they are concerned about the precedent for talks with other unions whose contracts will be up for negotiation in coming months.