Update on the Aveos Situation -District 140 Bulletin #55

Update on the Aveos Situation

Dear Sisters and Brothers:

On May 2, 2012, District Lodge General Chairmen met in Toronto with General Vice President Dave Ritchie, President and Directing General Chairman Chuck Atkinson and our legal counsel to clarify issues surrounding the ongoing Aveos situation.

The group discussed what was required in order to restart the airframe, engine and component business and how we could help to entice potential investors. The Canadian Office and District 140 have sent requests to all levels of government, both federal and provincial, and to Air Canada in an effort to meet and resolve this issue. The Union contends that all parties need to meet in order to reach a solution to the ongoing CCAA situation.

That very same day, Air Canada filed a motion in federal court that would allow it to cancel all its contracts with Aveos. The Union is challenging this action and has advised the Company that this is a major detriment to our ability to attract buyers for Aveos and, subsequently, destroys any hope of getting our members back to work.

Regarding the pension issue, the funds that members had originally accumulated with Air Canada up to July 14, 2011, were never transferred to Aveos and therefore remain in the Air Canada pension fund. The contributions made by the members who worked for Aveos from July 14, 2011 through to the CCAA declaration on March 18, 2012, and the contributions made by Aveos have been placed in a trust fund with Manulife.

The IAMAW’s positions on this subject, which it expressed to the Office of the Superintendent of Financial Institutions (OSFI), are the following: 1) The Manulife monies should be put back into the Air Canada pension fund. All time spent with Air Canada and with Aveos should be used to calculate pension eligibility. Members who are eligible to retire should have the ability to do so now; all others should be given the ability to select how they want their monies dealt with. 2) Members who retired and were rehired should have their pensions recalculated based on the time they spent with Aveos.

Unfortunately, none of these options can take place until the Aveos CCAA process has been completed. However, this does not stop any of these members from applying to retire.

Yesterday, May 3rd, the Union attended the continuing arbitration hearing in regards to Air Canada’s obligation to provide us with outsourcing notification. The Union still contends that this is our work and, as such,

Article 20.07 should continue to apply. The company does not agree with our position and has asked for another continuation, which was granted. In the meantime, the previous interim order will continue to apply.

We will keep you informed of these and all other issues as developments unfold.

In solidarity,

Tony Didoshak
General Chairperson, Western Region

Fred Hospes
General Chairperson, Western Region

Gary Sinclair
General Chairperson, Central Region

Jean Poirier
General Chairperson, Eastern Region




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