LTD TERMINATION – ARBITRATION UPDATE -District 140 Bulletin #55

TO ALL IAMAW MEMBERS
EMPLOYED BY
AIR CANADA
LTD TERMINATION – ARBITRATION UPDATE

Dear Brothers and Sisters:

As you know, Air Canada has been attempting to terminate the employment of those Members
who have been in receipt of long-term disability benefits for more than two (2) years.

In July of 2016, when Air Canada began issuing termination letters, the Union filed grievances
and was successful in preventing Air Canada from going ahead with the terminations at that
time.

After a lengthy process, the Arbitrator has now issued an award in the first phase of the
arbitration proceeding permitting Air Canada to terminate the employment of Members who are
in receipt of LTD benefits where there is no reasonable prospect of the Member returning to
work and maintaining regular attendance in the foreseeable future because of disability.

To be clear, no Members will lose their LTD benefits because of this decision. What is at stake
is their continued receipt of the other health insurance and pension benefits that they were told
they would continue to receive while in receipt of long term disability benefits.

The Union is disappointed with this decision and is currently reviewing all of its options with legal
counsel.

However, given the Arbitrator’s decision, the parties are to move on to the second phase of the
arbitration proceeding, which is to determine whether the Company can terminate the
employment of specific individuals.

AFFECTED MEMBERS WILL SHORTLY BE RECEIVING LETTERS FROM THE UNION AND
OUR LEGAL COUNSEL EXPLAINING THE NEXT STEPS THEY NEED TO TAKE. PLEASE
LOOK OUT FOR THESE LETTERS. IT IS VERY IMPORTANT THAT AFFECTED MEMBERS
PROVIDE THE INFORMATION THEY ARE REQUEST.

As further information becomes available, it will be communicated to the affected Members.

In solidarity,

Fred Hospes
President and Directing General Chairperson
Western Region

BULLETIN NO. 055 – ISSUED DECEMBER 5, 2018
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