Transport Committee on March 8th, 2011

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

That's my question. I want to make sure that you received a motion from the national organization and were told to come here today to represent all the members of the union. Is that correct? You received a motion and authority to come here and represent all members of the union.

I just want to make sure, because it says here “local lodge”, and a local lodge is a lot different from the union as a whole. How many members are there in your local lodge, for instance?

[Marcel St-Jean]

We have about 3,500 members. We aren't here under a motion from our national union. We are supported by our national and regional union, the district and the Grand Lodge. We represent machinists in Quebec and Canada.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Just to be clear, then, are you speaking here today on behalf of a national organization?

[Marcel St-Jean]

Yes, we are speaking on behalf of all of Air Canada's unionized mechanics.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

And you have their authority to come here to speak on their behalf. I'm just trying to make sure. Are you here on their authority and have you been given direction to speak and say what you have said?

[Marcel St-Jean]

Yes, we have their authority.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you.

If you disagree with anything I say—I'd appreciate it if you'd do that. We don't have a lot of time to ask questions, unfortunately.

My understanding from Air Canada is that all maintenance services performed by Aveos for Air Canada are performed in Canada. In fact, there's a contractual obligation to perform them in Canada unless they receive authority from Air Canada to move them to some other place. Is that correct or not correct, as far as you're aware?

[Jean Poirier]

You are almost right, but I could read you the memorandum of understanding...

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

No, no—

[Jean Poirier]

Non, c'est—

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

—I don't have a lot of time to ask questions. That's my difficulty.

[Jean Poirier]

Okay, c'est beau. Présentement—

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

And I do want to get that on record.

[Jean Poirier]

The current contract between Aveos and Air Canada, not with the employees, is valid to June 30, 2013. The planes have to be built...

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Okay, that's perfect. So right now I'm correct, one hundred percent.

[Jean Poirier]

But that decision can be changed.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

I understand that. But right now that's the case.

You understand, of course, the shareholders own Air Canada, 75% of whom, I understand, are Canadians. It's one of the most successful Canadian companies. It's actually one of the most successful airlines in the world, and in fact one of the safest airlines, if not the safest airline in the world. And congratulations for the work that you and your members have done in relation to keeping it that way. I appreciate that, and I know all Canadians do.

It has a tremendous amount of outstanding shares too. I see that the share price, unfortunately, has gone down since the December 10 meeting. But it's still $2.50, whereas a year ago, in April of 2010, it was $1.30—almost double even in that period of time. So Air Canada seems to be doing very well.

I'm just curious. Have any employees received layoff notices that you're aware of, from Aveos in relation to the CIRB decision?

[Jean Poirier]

Yes, there are going to be layoff notices. We anticipate 272 layoffs next year. As far as whether that is because of the transition, I couldn't tell you.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Those are the seasonal layoffs. So none so far.

Have any salaries, benefits, or pensions been affected by the recent decision of the CIRB as well? Have you seen any changes in benefits, pensions, or wages as a result of that decision?

[Jean Poirier]

The CIRB split the union certification under the Canada Labour Code, but did not take the Air Canada Act into account.

Does that answer your question?

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Not really. Maybe you could repeat it.

[Jean Poirier]

When there is a split certification, the two collective agreements follow. If the company is sold to ExelTech tomorrow morning and the name changes, the collective agreement follows. It will be the same agreement. There were objections and the Air Canada Act was not considered when the certification was split. That is why we are here today.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

I'm curious about the union's vision of the airline industry today. We're in a global economy. I fly a lot. I fly around the world a lot. I see a lot of things. And I try a lot of different airlines. What is your vision—I'm interested in that—of Air Canada's place in the world? First of all, as far as being competitive with the rest of the airline industry, which is obviously very important, because everybody wants to fly in and out of Canada, I'm very curious about that, if you could answer that, please.

[Serge Gélinas]

You say things are going well for the shares. In reality, Air Canada shareholders have lost a lot of money.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

No, sir. I said that over a one-year period they've done extremely well, but halfway through the year they were up to $3.60. I'm aware of that. They had a slight blip over a year ago.

I understand. I very closely watch all the shares.