At the time of writing, the Air Canada strike was at a complete standstill. No negotiating going on, no arbitration happening and no planes in the air. This labour action is taking on the complexion of being a precedent-setting strike where labour unions are taking a stance for reasons broader than just those involved with the particular labour grievance at hand.
The two most pressing issues in this dispute are the general level of wages and the contention that flight attendants do some work they are not paid for. Wages are of course always the number one ask in labour negotiations, even though unions often deny this. Always follow the money. A previous negotiation with Air Canada pilots ended up in a 42 per cent wage hike over four years. Air Canada’s last offer to flight attendants was 38 per cent over four years. This is still considerably more than most workers in Canada could dream of, but not quite up to the standard set by pilots.
The issue of not being paid for work done concerns the fact that flight attendants work just prior to flights to ensure the cabin is in good shape, safety provisions are in place and things are generally ready for passengers to board. Flight attendants this writer has spoken with say this time is maybe up to an hour maximum prior to take-off, at which point flight attendants’ paid time begins. This is not a new issue, however, but has apparently been the norm in the airline business in North America for many decades. So presumably the union was okay with this up until now, when it has suddenly become a major sticking point in negotiations.
The Canadian Union of Public Employees (CUPE), the union representing the flight attendants, now claims this unpaid time is equivalent to one week per month, which seems absurdly excessive. Those of us who fly frequently are well aware flight attendants tend to board an aircraft about a half hour or so prior to passengers and deplane shortly after the rest of us. Pretty hard to figure this adds up to the equivalent of one week per month. However, unions are well known to greatly exaggerate their grievances in the hope of winning support, so this claim is not surprising but should be questioned.
Recently, some U.S. flight attendants have made progress in having these previously unpaid times compensated, so this appears to be the reason this issue that has existed for ages suddenly became a priority in the Air Canada negotiations. As of now, Air Canada has offered 50 per cent of pay for this preparatory time. The union is asking for 100 per cent compensation.
The other consideration is how any job balances out in terms of pay and benefits obtained versus the amount of work involved. Air Canada flight attendants receive many benefits that this author suspects most Canadians are not aware of. For instance, they have a good pension plan of which part is a defined benefit plan – the gold standard of pension plans which has disappeared for the majority of Canadians who don’t work for government. Attractions of the job clearly include the ability to travel extensively, and presumably people attracted to the flight attendant’s job view this as valuable. In addition, retired flight attendants are able to enjoy virtually free flights for life, which is not a shabby benefit. The notion that these folks work for “poverty wages,” as their union is claiming, is over the top to say the least.
All that being said, this labour disruption is yet another strike against Canada as a well-functioning economy and reliable economic partner. Sadly, Canada has become renowned for strikes in some of our major vital infrastructure-related industries – ports, postal service, transportation etc. As investment continues to flee Canada under the Carney government and damage our economy, these strikes just ruin Canada’s reputation even more on the global front as an unreliable partner and a failing economy. Such events also hurt businesses in Canada, who rely on airlines for their business travel, at a time when the Canadian economy is moving into recession and the last thing businesses need is yet another roadblock.
Make no mistake – whatever the outcome of this labour dispute, we the travelling public and businesses will be the ones paying for it. Whatever Air Canada ends up offering to reach labour peace will translate into the next hike on our airline tickets. This is always the case in these types of situations – the company involved just passes the increases on to its customers and fuels more inflation in the process.
Another relevant factor is that virtually all of Canada’s key infrastructure industries operate in an environment of protection against foreign competition, with the result that just a handful of companies dominate the industry. Whether it’s transportation, airlines, telecommunications, banking, postal service, ports and even media, they are protected from competition from outside Canada. This leads to higher costs and fewer choices for Canadians. Government should open up these markets more to competition, for the benefit of all Canadian consumers. This would help to offset the impact of a strike such as that of the Air Canada flight attendants, who can currently hold the Canadian public and businesses for ransom with impunity.
She has published numerous articles in journals, magazines & other media on issues such as free trade, finance, entrepreneurship & women business owners. Ms. Swift is a past President of the Empire Club of Canada, a former Director of the CD Howe Institute, the Canadian Youth Business Foundation, SOS Children’s Villages, past President of the International Small Business Congress and current Director of the Fraser Institute. She was cited in 2003 & 2012 as one of the most powerful women in Canada by the Women’s Executive Network & is a recipient of the Queen’s Silver & Gold Jubilee medals.
