Air Canada faces flak from flight attendants' union over executive compensation

By Jeff Pines

Washington, Jan. 20 - Air Canada Inc.'s new management is taking flak from its flight attendants' union.

The Air Canada component of the Canadian Union of Public Employees said it filed a grievance asking management to abide by a collective agreement to make payments equivalent to those the company will pay senior executives and management. The company and the union signed the agreement in May.

Under the company's proposed restructuring plan, Robert Milton, chief executive officer and Calin Rovinescu, chief restructuring officer will each receive C$30 million and senior management will get C$100 million.

The executive bonus scheme was authorized under the terms of the agreement between Mr. Victor Li of Trinity Times Investments and Air Canada after months of negotiations. Li is expected to make a C$650 million investment in the Montreal-based airline in return for a 31% stake.

"It is outrageous that senior executives and managers are being rewarded for gutting the wages and benefits of workers and forcing CUPE members and other workers to pay the costs of the company's insolvency," said Paul Moist, CUPE National president.

The attendants say they resent the scheme after unionized workers bit the bullet and gave the company C$1.1 billion in concessions over six years.

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