Air Canada/Former AVEOS Members RE: Distribution of Excess Funds Under CIRB Order -District 140 Bulletin #35

IMPORTANT MESSAGE

NOTICE TO ALL MEMBERS AND FORMER MEMBERS OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS (IAMAW)

WHO OPTED TO RETIRE/RESIGN FROM AIR CANADA AND REHIRE BY AVEOS

RE: DISTRIBUTION OF EXCESS FUNDS UNDER CIRB ORDER 9996-U AND THE SEPTEMBER 12, 2012 ARBITRATION DECISION

 

Dear Brothers and Sisters,

Further to Bulletin #14 issued March 5, 2015 please be advised that the final distribution of surplus funds in the possession of Transportation District 140 of the IAMAW, as a result of a September 12, 2012 Arbitration Decision concerning the implementation of CIRB Order 9996-U, has once again been delayed by legal proceedings.

As described in past Bulletins, that Decision assigned a value of $55,000,000 to the packages payable by Air Canada under Order 9996-U and directed that all payments to Union Members were to be made “as directed by the Union”. The basic Union philosophy and principle of Transportation District 140 was and is, that every Member who was employed at Air Canada on January 31, 2011 who opted to transition to Aveos from Air Canada as part of the Aveos transition process and who lost their job when Aveos closed, was negatively impacted in some form or another by Aveos’ insolvency and closure and should therefore receive some sort of compensation if possible.

The $55,000,000 that was obtained by the Union through the arbitration process was sufficient to allow the Union to direct Air Canada to pay the full package amount, as defined in Order 9996-U, to each and every one of the more than 1,700 Members of the IAMAW who met the threshold individual eligibility requirements set out in the Order. Accordingly, every Member who has received a package to date has already received the fullest possible individual entitlement set out by Order 9996-U.

In the interests of equity and fairness and in accordance with the terms of the Arbitration Decision, the Union then decided to equally distribute surplus funds, less statutory deductions, to former Aveos Members who were employed at Air Canada on January 31, 2011, who opted to retire or resign from Air Canada as part of the Aveos transition process, and who were still working at Aveos at the time of its closure, since they have not received any compensation for their losses resulting from transitioning to Aveos in the context of its insolvency and closure. This distribution was placed on hold in response to a legal challenge filed by some Members who had already received payment in full of the

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IMPORTANT MESSAGE
NOTICE TO ALL MEMBERS AND FORMER MEMBERS OF THE
INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS (IAMAW)
WHO OPTED TO RETIRE/RESIGN FROM AIR CANADA AND REHIRE BY AVEOS

RE: DISTRIBUTION OF EXCESS FUNDS UNDER CIRB ORDER 9996-U AND THE SEPTEMBER 12, 2012 ARBITRATION DECISION
______________________________________________________

package set out in Order 9996-U. That legal challenge was dismissed by the Canada Industrial Relations Board in February 2015 and the Union therefore advised in March that the distribution was going ahead.

Unfortunately further legal proceedings have been filed by these Members and they are now asking the CIRB to reconsider its February 13, 2015 unanimous decision and in addition they are asking the Federal Court of Appeal to overturn the CIRB’s decision. Transportation District 140 believes the approach it has taken to be reasonable and fair, as well as fully consistent with CIRB Order 9996-U and the Arbitrator’s decision of September 12, 2012, and are hopeful that these legal proceedings will be resolved expeditiously in order that we may proceed with the final distribution of these funds.

In Solidarity,

Fred Hospes, President & Directing General Chairperson
Transportation District 140, IAMAW

BULLETIN NO. 035 – ISSUED JUNE 18, 2015
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