The union representing pilots at discount airline Sunwing has filed a formal complaint with the Canada Industrial Relations Board, alleging the company negotiated a recent labor deal in bad faith because it knew a sale of the airline to Westjet was on the table.
The Unifor union struck a deal with the airline on behalf of the 451 pilots it represents, bringing modest wage increases and improvements to other benefits. When the deal was ratified in February, it was hailed as an agreement that would bring some stability to all parties during an up-and-down few years for the airline industry.
But that optimism began to wane when the airline announced a few weeks later that it had agreed to be acquired by Calgary-based Westjet.
The union claims the airline’s management knew a takeover bid was in the works and had they shared this with the union during negotiations they would not have made the concessions they did.
As such, the union filed a formal complaint with the Canada Industrial Relations Board, alleging that the company had bargained in bad faith by failing to disclose its impending sale.
“It was paramount for the union to obtain assurances from the employer that it was not discussing a sale to WestJet, as any potential sale would have important implications for the union’s bargaining position,” the filing said.
CBC News has reached out to Sunwing and Westjet for comment. These requests were not returned.
Overcrowded baggage carousels have become a regular sight at Canadian airports recently, with scenes like the one at Toronto’s Pearson Airport on June 29 being reported across the country. (Patrick Morrell/CBC)
Although Unifor initially welcomed the merger, they have since said the company is seeking additional savings through contract violations as air travel picks up again from the pandemic downturn.
“What we would like to do is revisit areas of the collective agreement that would have been discussed and negotiated differently if the airline had come to us and been honest that these discussions were taking place,” said Unifor President Barrett Arman Local 7378, which represents the pilots, in an interview with CBC News.
The union says it doesn’t object to the merger, it just wants to ensure Sunwing pilots are on a level playing field with other Westjetters if and when it happens.
“The company said it was a great expansion plan. We think it’s a great idea, provided there’s wage parity and they’ll agree to whatever deals we offer,” Arman said. “At the end of the day, our pilots don’t want to be kicked out on the street to start over.”
Chaos at the airport
Sunwing’s merger with Westjet is scheduled to close by the end of this year, both companies said earlier.
It’s not immediately clear what the board filing means for the likelihood of the deal going through. It already faces multiple regulatory hurdles, including from Canada’s Competition Bureau, which has already said it plans to review the deal to make sure it’s a good thing for consumers.
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Long security lines at several Canadian airports are the result of staff shortages, officials say. The union representing the examiners suggests that recruitment and retention challenges could be resolved if employees were better trained and paid more.
The potential for labor strife is further bad news for Canada’s beleaguered tourism industry, which has been hit by staff shortages, long lines, rampant delays and baggage headaches amid the pandemic.
Armand lays most of the blame for what’s happening at Canadian airports right now squarely at the feet of the airlines themselves, which cut staff to the bone during the pandemic, begged for government help and are now struggling to grow again.
“All of this is a factor in companies laying off everyone and [now] running to the employees, saying, ‘Can you come and work for us?'” Armand said. “You kicked us to the curb for a year and a half when we were barely able to pay our mortgages, and now you want us to work really hard.”
John Gradek, a former Air Canada executive who is now an aviation industry lecturer at McGill University in Montreal, told CBC News on Monday that he expects those problems to persist at least through the summer.
“Unless you have a high risk tolerance, it’s probably not a good time to travel,” Gradek said. “Patience is the operative word.”
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