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2009 Air Canada Share Trust Agreement
2021 Scholarship Application
AIR CANADA COVID-19 VACCINATION
FAQ – EARLY RETIREMENT INCENTIVE PROGRAM UPDATED April 23, 2021
Earth Day 22 April
WEBINAR SIGN UP 22 April 2021 at 6 Pm EST
On April 22 we celebrate Earth Day.
This year, we mark Earth Day in a context where the COVID-19 pandemic continues to create an unfair burden on working people all over the world. As a trade union, we know all too well that the devastating impact of COVID-19 on the lives, livelihoods and well-being of working people in Canada and abroad. Similarly, the climate crisis, and our society’s failure to plan for it, will result in a disproportionate weight on working people, especially racialized communities and their families.
This is a day to reflect on the importance of our environment and the clear connection that it shares in the lifelong health of all of us and our families. As well, we recognize with solemn consideration how social activism, humanity and overall concern for a safe environment will ensure our victory over the threat of COVID-19 virus and all other global health challenges to the human race.
We are well aware of our need to build back a green economy and have recognized this in our Unifor Build Back Better campaign.
We are committed to making existing jobs more environmentally sustainable, while simultaneously advocating to create more decent-paying, full-time, safe and healthy green jobs in all sectors of society.
Our recent success in auto bargaining bringing billions of dollars of manufacturing investment to Canada for electric vehicles is proof of our commitment.
Our members demand that we protect their jobs and incomes. At the same time, our members also demand that we work hard to improve the environment. Both demands are reasonable ones and we understand we cannot accomplish this alone.
Therefore we have joined with other labour unions and climate justice organizations in Canada, the United States and Mexico working together to make a green economy reality.
The North American Solidarity Project is a joint effort to transform the labour movement in North America based on democratic, militant, and social unionism, and true internationalism between workers in the United States, Mexico and Canada.
The North American Solidarity Project is inviting union members, activists and allies to attend an online exchange called COVID-19 to climate, workers respond to crisis.
The online exchange will take place on Thursday, April 22 from 6 p.m. to 7:30 p.m. Eastern Time on Zoom. Advance registration is required.
The panel will aim to define crisis as experienced by working people today. The panel will seek to envision what labour climate action looks like now and for future generations.
Women Surviving the Pandemic – A One Year Check In
09 June 2020 at 19:00 EST
Air Canada CSSAs: Update: Early Retirement Incentive Programs
Early Retirement Incentive Program
Unifor welcomes Air Canada relief package
Unifor welcomes Air Canada relief package
April 12, 2021 at 10:30 PM
New federal measures aimed at bolstering Air Canada will help protect good jobs and is an important step on the road to economic recovery, says Unifor.
“Today’s announcement by the federal government is a recognition that aviation workers are pivotal to the Canadian economy,” said Jerry Dias, Unifor National President. “The relief package provides a good balance of certainty for communities large and small, the company, and its workers.”
Unifor has led a campaign for months urging Canada to join the majority of other industrialized nations that instituted airline sector relief. During a media conference this evening, Deputy Prime Minister Chrystia Freeland and Minister of Transport Omar Alghabra announced that there would be no additional layoffs permitted as part of the deal. She also said the resumption of service to 17 regional routes is a condition of the relief package. “We look forward to working with Minister Freeland to see that other Canadian carriers can achieve similar supports so good jobs across the sector can be protected,” said Dias.
Unifor represents more than 16,000 members working in the air transportation sector, including pilots, customer service representatives, aircraft groomers, catering staff, and air traffic controllers.
Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights fights for equality and social justice in Canada and abroad and strives to create progressive change for a better future.
Read Jerry Dias email to the Premiers : Prioritizing the Front-line Airport Workers
Air Canada and Government of Canada Conclude Agreements on Liquidity Program
Today Air Canada announced that we have entered into a series of debt and equity financing agreements with the Government of Canada, which will allow Air Canada to access up to $5.879 billion in liquidity through the Large Employer Emergency Financing Facility (LEEFF) program.
“Air Canada entered the pandemic more than a year ago with one of the global airline industry’s strongest balance sheets relative to its size,” said Michael Rousseau, President and Chief Executive Officer, in a press release issued earlier today. “We have since raised an additional $6.8 billion in liquidity from our own resources to sustain us through the pandemic, as air traffic ground to a virtual halt in Canada and internationally.”
“The additional liquidity program we are announcing today achieves several aligned objectives as it provides a significant layer of insurance for Air Canada, it enables us to better resolve customer refunds of non-refundable tickets, maintain our workforce and re-enter regional markets. Most importantly, this program provides additional liquidity, if required, to rebuild our business to the benefit of all stakeholders and to remain a significant contributor to the Canadian economy through its recovery and for the long term.
“As vaccine deployments ramp up, we continue to work with the Government of Canada on the evolution of safe and science-based test and quarantine relief measures with a view to safely restarting our sector,” Michael continued. “We know that Canadians are looking forward to re-connecting with friends and family and taking those long-awaited vacations and business trips and we will be ready to safely connect Canadians within Canada and Canada to the world.”
The financial package provides for fully repayable loans that Air Canada would only draw down as required, as well as an equity investment, and is comprised of:
- Gross proceeds of $500 million for Air Canada shares at a price of $23.1793 per share;
- $1.5 billion in the form of a secured revolving credit facility at a 1.5% premium to the Canadian Dollar Offered Rate (CDOR); the facility is secured on a first lien basis by the assets of Aeroplan Inc., Air Canada’s shares in Aeroplan as well as certain assets of Air Canada, including certain intellectual property relating to the Aeroplan loyalty program;
- $2.475 billion in the form of three unsecured non-revolving credit facilities of $825 million each with: the first, five-year tranche at a 1.75% premium to CDOR per annum; the second, six-year tranche at 6.5% per annum (increasing to 7.5% after 5 years); and the third, seven-year tranche, at 8.5% per annum (increasing to 9.5% after 5 years);
- As part of the financial package, Air Canada issued an aggregate of 14,576,564 warrants exercisable for the purchase of an equal number of Air Canada shares, subject to customary adjustments, at a price of $27.2698 per share during a 10-year term, representing 10% of the total commitment available under the above secured and unsecured credit facilities; 50% of the warrants vested concurrently with the implementation of the credit facilities and the remaining 50% of the warrants will vest on a proportional basis to the amounts that Air Canada may draw under the above unsecured credit facilities;
- Up to approximately $1.4 billion in the form of an unsecured credit facility tranche to support customer refunds of non-refundable tickets. The facility will have a seven-year term and carry an annual interest rate of 1.211%.
As part of the financial package, Air Canada has agreed to a number of commitments related to customer refunds, service to regional communities, restrictions on the use of the funds provided, employment and capital expenditures. These include:
- Beginning April 13, 2021, offering eligible customers who purchased non-refundable fares but did not travel due to COVID-19 since February 2020, the option of a refund to the original form of payment. In support of its travel agency partners, Air Canada will not retract agency sales commissions on refunded fares;
- The resumption of service or access to Air Canada’s network for nearly all regional communities where service was suspended because of COVID-19’s impact on travel, through direct services or new interline agreements with third party regional carriers;
- Restricting certain expenditures, and restricting dividends, share buybacks and senior executive compensation;
- Obligations to maintain employment at levels which are no lower than those at April 1, 2021; and
- The completion of the airline’s acquisition of 33 Airbus A220 aircraft, manufactured at Airbus’ Mirabel, Quebec facility. Air Canada has also agreed to complete its existing firm order of 40 Boeing 737 Max aircraft. Completion of these orders remains subject to the terms and conditions of the applicable purchase agreements.
In connection with the Government’s equity investment, Air Canada has agreed to provide customary registration rights. The Air Canada shares and warrants issued to the Government are subject to certain transfer restrictions as well as an exercise cap which limits the Government’s aggregate voting rights from the shares acquired pursuant to this investment (including upon any exercise of the warrants) to 19.99%.
Glossary of Terms and FAQ
Glossary of Terms
Large Employer Emergency Financing Facility (LEEFF).
LEEFF is a program instituted by the Government of Canada to provide liquidity assistance in the form of interest-bearing term loans to large Canadian employers who have been affected by the COVID-19 pandemic.
Canada Enterprise Emergency Funding Corporation (CEEFC).
CEEFC is a federal Crown corporation, incorporated in May 2020 and is wholly owned by Canada Development Investment Corporation, a parent Crown corporation. CEEFC is responsible for administering the Large Employer Emergency Funding Facility.
Revolving Credit Facility – An open-ended loan similar to a credit card. The borrower (Air Canada) can withdraw and pay back up to the maximum value of the loan repeatedly for the duration of the loan.
Secured revolving credit facility – When a credit facility is secured, it means that the borrower (Air Canada) has provided a form of collateral to the lender (in this case, the Government of Canada) to back the loan.
Unsecured non-revolving credit facility – In an unsecured non-revolving loan facility, none of the borrower’s (Air Canada’s) assets are subject to liens in favour of the lender (Government of Canada). However, because of the increased risk to the lender, interest rates are higher. In addition, with a non-revolving loan facility, once the borrower repays the loan, those funds cannot be borrowed again.
Canadian Dollar Offered Rate (CDOR) – A benchmark bank lending rate established every day based on submitted rates from a panel of banks active in the Canadian Banker’s Acceptance market. This is used for calculating short term loans by banks and is currently about 0.45%.
Warrant – A warrant is a form of security that allows the warrant holder (in this case, the Government of Canada) to purchase company shares at a specific price within a specific period of time. Warrants allow the warrant holder to leverage their investment and increase their return if the value of the borrower’s company increases as hoped.
Q: We keep saying that Air Canada went into this with a strong balance sheet. We also raised an additional $6.8 billion this last year. So why are we further borrowing from the Government of Canada? Aren’t we going unnecessarily into more debt?
A: We should be very proud that we entered this pandemic in such a strong position – and proud that the market had enough confidence in our ability to overcome that we were able to raise such a significant amount of money in the heart of this crisis. These both bode very well for our recovery.
We view these loans as an added layer of insurance that, paired with our existing liquidity, enables us to better resolve customer refunds of non-refundable tickets, maintain our workforce and re-enter regional markets. Most importantly, this program provides additional liquidity, if required, to rebuild our business.
Q: Some of the interest rates appear to be extremely high – particularly the three unsecured non-revolving credit facilities that have interest rates of CDOR plus 1.75, 6.5 and 8.5 per cent respectively. And these rates rise even further over time. Can’t we get better lending rates from the private market?
A: These loans are unsecured which means there is more risk for the lender. Furthermore, we are not obliged to avail ourselves of these loans. If our business improves in such a way that we do not need to access them we won’t, and there will be no interest paid. If we do decide to draw on these them, we can also repay them as quickly as we choose.
Q: We’ve been talking about “sector support” all this time. How is this considered “support”, when it’s all loans that have to be repaid, some of them at high interest rates? Is this really what we asked for?
A: To be clear, Air Canada has never asked for a “bailout”, nor would we want to accept one. We believe strongly that we can and should stand on our own two feet. We were however looking for access to funding with reasonable terms as added insurance. We believe we have successfully obtained both in reaching this agreement.
Q: Does the new $500 million in Air Canada equity give the government influence or power in our decision making going forward or how we do business?
A: That the Government of Canada is becoming a shareholder can be taken as a sign that they believe our company has a strong future and sees our shares holding their value and increasing over time. The Government will be able to vote their shares like any other shareholder but also like with any other shareholder, their influence will be limited to their voting shares. Their equity does not give them a majority vote. In fact, the Government’s investment (excluding warrants) will represent approximately 6% of all shares, with the warrants representing another approximately 4% (assuming they all vest and are exercised).
Q: What are LEEFF and CEEFC and what role do they play in these arrangements?
LEEFF stands for Large Employer Emergency Financing Facility and CEEFC for Canada Enterprise Emergency Funding Corporation.
A: LEEFF is a program instituted by the Government of Canada to provide liquidity assistance in the form of interest-bearing term loans to large Canadian employers who have been affected by the COVID-19 pandemic and CEEFC is the federal Crown corporation responsible for administering LEEFF.
Vaccine Appointments –
For those of you interested in receiving the AstraZeneca vaccine being offered on Level 1 of YVRAP please be advised that Management needs minimum 1hr notice to preplan manpower. Thank you in advance.
PERIODICALLY UNIFOR HAS WEBINAR ON VARIOUS TOPICS. IF ANY OF THEM INTEREST YOU, SIGN UP.
Mental Health Webinar with Michael Landsberg
May 05, 2021 at 6:00pm (EASTERN TIME )
Message from Our Bargaining Team ( Technological Change/Automation )
Unifor Celebrates Trans Members
Let’s Save our Industry Sign the Petition
Message from Don Ross Unifor 2002
From: Don Ross, Unifor 2002 Interim President
Dear Unifor Member,
On behalf of the Unifor 2002 Executive Board and our Unifor Executive Team, I would like to thank you for participating in our ongoing campaign to promote an Aviation Recovery Plan to the Canadian Government. If you have not had the opportunity to complete this short petition, we invite you to take a moment to help all aviation sector workers. Please click here. Completing this form will only take a moment of your time. Canada needs a plan to ensure the aviation industry is able to weather this storm and come out the other side intact. Please make sure your Member of Parliament hears from you. Thank you for your support.
In Solidarity, Don Ross
Unifor 2002 Interim President
TIME IS TICKING SIGN THE PETITION
IMPORTANT MESSAGE REGARDING GIDIP
Message from Your District Chair, Cathy (Reconciliation) -04 March
Vacation Equalization for 2020 – 04Mar
First vacation statement issued ……………………. Mar 12/2021
Timebank deduction (if you owe) ………………… Apr 14/2021
Air Canada payouts/Employee deductions ….. Apr 28/2021
Please check your AC email for a detailed explanation and go to HR connex after
Mar12th to view your Vacation statement.
Message from Your District Chair, Cathy Wear your Mask – 24FEB
As highly infectious strains of Covid-19 circulate please remember to wear your mask at all times unless you are eating or drinking. Socializing in the lunchroom/North Leads office/Jazz office or badging out are not acceptable moments to be mask-less. Stay safe !!
Message from Your District Chair, Kathy Wage Increase -22FEB
Our yearly negotiated wage increase will be effective Sunday Mar 7th as it is the beginning of the next pay period.
Message from Your District Chair, Kathy STOC CONX DESK – 19FEB
Due to Covid-19 the Stoc Conx Desk 1 year lock in has been suspended until further notice.
Message from Your District Chair, Kathy Racism – 29 jan
Racism – 29Jan
The Union and Company have zero tolerance towards racism. It has no place in our work environment. What some may think is funny, can be deeply offending to others. Lets respect and celebrate diversity and keep an open mindedness towards other cultures.
Air Canada CSSA update on joint planning committee process
|In December, 2020, Air Canada applied to the Minister of Labour for a waiver of the Group Termination provisions of the Canada Labour Code pertaining to members who were laid off earlier in 2020. The Employer was arguing that they should not have to follow the Canada Labour Code provisions due to the pandemic. Unifor, along with other Air Canada unions filed objections to this application. In mid-February, 2021, Air Canada’s application for the waiver was denied by the Minister of Labour. Per the Labour Code requirements, Air Canada posted the Notice of Group Termination on February 16th in all of the work locations. As the waiver has been denied, Air Canada is mandated to form a joint planning committee with each of the unions involved. Your Air Canada Bargaining committee will form the Unifor Local 2002 component of the joint committee. The joint planning committee is formed to develop an adjustment program to try to eliminate the necessity for the termination of employment, to minimize the impact of the termination of employment on the redundant employees and to assist those employees in obtaining other employment. In the event the joint committee is not able to agree on the process or terms required to facilitate the mandate of the committee, an arbitrator can be requested by either component of the committee, not earlier than March 26th. The role of the arbitrator is to assist the joint planning committee in the development of an adjustment program and to resolve any matters in dispute respecting the adjustment program. Your bargaining committee will be attending the first joint planning committee meeting with Air Canada on Tuesday, March 9, 2021. While we are cautiously optimistic that we will be able to mitigate more of the current layoffs and assist members that wish to move on to alternate employment, we also know that with the sheer volume of members currently on layoff status, we will not be able to mitigate 100% of the layoffs. We will update you with additional information once we meet with the employer. In solidarity, Your Air Canada Bargaining CommitteeFrances Galambosy, Central Region, Chairperson|
Tammy Moore, Atlantic Region
Benoit Lapointe, Eastern Region
Joanne Goulet, Western Region
Steve Murphy, Pacific Region
Leslie Dias, Unifor Director – Airlines Sector