Jazz Arbitration Award Announced

Jazz Arbitration Award Announced

July 19, 2006 at 12:00 AM

Similar to the earlier wage re-opener arbitration award announced at Air Canada, Arbitrator Michel Picher has released both his findings and orders in the Jazz arbitration.

The wage re-opener mediation / arbitration process was bargained during the 2003 bankruptcy of Jazz which contemplated a six year recovery period for the airline. The Collective Agreements bargained during the airline’s court supervised bankruptcy called for wages to be renegotiated in 2006 -- the midpoint of the Jazz recovery period. If the CAW and Jazz could not agree on wages this year the matter was to be referred to an arbitrator who would decide all compensation issues at the airline until June 30, 2009. It is from this arbitration process at the midpoint of the airline’s recovery period that Arbitrator Picher’s orders will now be implemented.

Arbitrator Picher’s orders make changes to compensation for all CAW represented employees at Jazz. Jazz management did not object to Arbitrator Picher retaining jurisdiction to rule on the “B” scale in the Technical Services, Customer & Aircraft Services and Crew Scheduling bargaining units.

During the arbitration, Jazz management argued that wages should remain status quo until 2009 and tabled increases of 0% in 2006, 2007 and 2008 (0/0/0). The CAW tabled wage increases of 5/5/5 as well as the gradual elimination of the “B” scale. Jazz is in a strong financial position relative to all other Canadian air carriers so the CAW’s proposals were responsible in this healthy environment. Arbitrator Picher took a conservative approach to wage increases in light of instability in the North American airline industry. He ordered a small increase to the “B” scale as well as modest wage increases for all CAW employees at Jazz.

The following table summarizes Mr. Picher’s orders for all CAW represented employees. The uplift will be added to each step of the “B” wage scale: after that the uplifted amounts will be subject to the annual increase.

  

Summary of Arbitrator Picher’s Wage Orders

Date of Increase Uplift to B Scale
CSA and ACS
Uplift to B Scale
Tech Services
Uplift to B Scale
Crew Sched
Annual Increase for all Groups
July 1, 2006 3 cents 5 cents 3 cents 1%
July 1, 2007 5 cents 8 cents 5 cents 1.75%
July 1, 2008 7 cents 10 cents 7 cents 1.75%

  

The CAW did argue that a higher increase was deserved for its Jazz members, particularly at Technical Services, as the company's performance clearly showed that its financial recovery is progressing well. However, the CAW was aware it would be difficult to make significant gains during the arbitration process as the Union was not in a position to strike if its wage proposals were not accepted. We will look for every opportunity to negotiate better wages for our members until 2009 when normal bargaining circumstances return. Mr. Picher's decision did not give the CAW everything requested, however, his orders do force the company to hand over more money to our members than it would have if the arbitration process had not been in place.

 

For further information contact your Bargaining Committee Representative.

Jazz Technical Services
Tim Way
Renaud Parent
Ian Waite
Carlos Cayuqueo
Peter Brown
John Murawesky
Tracey Read

 

Jazz CSA & ACS
Shirley Anderson-Mio
Josée Genois
Nancy Broughm
Leona Currie
Janice MacKey
Crew Scheduling
Tami Kendrick
Charles McAulay

Please click on the links below to view the following:

Submission from the CAW and its Local 2002

Award from Michel G. Picher