Air Canada work stoppage averted after tentative deal with pilots | CBC News

AIR CANADA STRIKE

Course Learning Outcomes Addressed

CLO 1: Apply the fundamental principles of negotiation to various conflict management situations

CLO 3: Devise strategies for overcoming barriers in negotiation situations

CLO 5: Identify alternative approaches to dispute resolution, including third-party interventions

CLO 6: Recommend collaborative approaches to resolving conflict 

CLO 7: Analyze and develop effective approaches to managing interpersonal dynamics involved in negotiation situations 

CLO 9: Identify best practices for handling challenging dispute resolution situations 

You are expected to:

Find an article and provide a short summary of the article and an analysis of the issues at hand. 

As a group, decide on one current issue brought forward by your team members to focus on. 

Provide your perspective on whether you agree or disagree with the focal article's conclusions and your reasons why.

Provide suggestions and/or recommendations you would have made to address the issues raised in the article. 

Create a report summarizing the article, your group's perspective and recommendations.

Current Issues Assignment: Air Canada Strike 2024

Group # 1

Alia Strots, Eleni Vitsentzator, Siyang Qu

Lawrence Kinlin School of Business | Fanshawe College

MGMT-7021: Negotiation/Mediation/Dispute Resolution

Honours Bachelor of Commerce

Human Resources Management (BHM1)

Professor Joanna Watkins

Friday, Sept 25 2024

Table of Contents

Introduction to the Issue and Summary of the article……………………...………………….1-2

CLO 1: Apply the fundamental principles of negotiation to various conflict management situations

CLO 3: Devise strategies for overcoming barriers in negotiation situations

CLO 5: Identify alternative approaches to dispute resolution, including third-party interventions

CLO 6: Recommend collaborative approaches to resolving conflict 

CLO 7: Analyze and develop effective approaches to managing interpersonal dynamics involved in negotiation situations 

CLO 9: Identify best practices for handling challenging dispute resolution situations 

Recommendations………………………………………………………………………………..

References……………………………………………………………………………………

Appendices

A-1 A Negotiation Process Canada Labour Law…………………………………….…………..27

B-1 Chart of Issue Priorities……………………………………………………………………

Air Canada has averted the stoppage of work by Air Canada Pilots using conflict negotiation techniques, this had great outcomes for various stakeholders. This potential strike would have affected approximately 110,000 travelers, who had to make alternative plans (Valis, 2024). The other stakeholders included 5400 pilots that were represented by the union. The issues that the pilots had related to the stagnation of their pay as related to the inflation, as well as overwork related to the shortage of workforce which requires high level of training and professionalism. Specifically, it was indicated that pilots only get a portion out of tickets sales that goes towards their salary. The Air Line Pilots Association also stated that the initial proposal between the union and the board remained far apart on the central question of pay. The Air Line insisted upon 30% increased, while ALPA stated that with record profits their offer was insufficient and represented below the market compensation. Although for general population it would appear that 30% raise is sufficient, considering that Pilots are a scarce resource, they could demand improvements to their working conditions, compensation, retirement and other issues. The issues were compounded by two other strikes in transportation, specifically Via Rail and West Jets mechanics.

CLO 1: Apply the fundamental principles of negotiation to various conflict management situations

According to the textbook, there are five major points that one should consider in the negotiation proces: “Separate the people from the problem. 2. Focus on interests, not positions 3. Invent options for mutual gain 4. Insist on using objective criteria.”(p. 42, ) Sometimes mediation is successful, because it separates personal interests, although as perceived in this case it has taken over a year to come to a successful negotiation. It is challenging for particles to separate emotions, and to use logical approaches. Each party should attempt to explain their interests clearly and have a full understanding of the other party’s interests(p. 43) Once all possible solutions as they can during the brainstorming sessions are exhausted, evaluations of those proposed solutions can begin. Insist on using objective criteria while being polite. 5. Understand your BATNA - best alternative to a negotiated agreement.

CLO 3: Devise strategies for overcoming barriers in negotiation situations

Some of the barriers that could have been a factor in negotiation that prevented parties with different needs and goals to come to an agreement include:

Overconfidence: The pilots could have been overconfident in the low availability of replacement workers, if the government stepped in to issue “Back to Work” legislation, that could have negatively affected a negotiation: “The government said that they would protect the economy, but would only intervene if no negotiations would take place.”

Lack of Confidence

Negativity: The Board of Directors stated that the demands were unreasonable.

Lacking Empathy: The society might have perceived pilots as already overpaid profession and the 40% increase questionable during a recession

Ill Preparation

Lack of Trust

Cultural Barriers: male dominated profession

If the agreement was not reached, there would have been consequences:

The countdown was on for Air Canada and its pilots to reach a deal, as both sides would have been in a position to issue a 72-hour notice of a strike or lockout at 12:01 a.m. on Sunday. The airline had said the notice would have triggered its three-day wind-down plan, starting the clock on a full work stoppage as early as Wednesday. (Vallis, 2024)

It has been stated that there has to be a better way to manage these disputes other than holding Canadian air travellers and Canadian shippers hostage. (Vallis, 2024)

CLO 5: Identify alternative approaches to dispute resolution, including third-party interventions

Determining alternatives to negotiation would have alleviated expenses and losses associated with the negotiation process, it would also help a company and HR personnel determine the bottom values that are within the budget. Therefore both parties would have to go through information gathering process prior to starting any negotiations. For instance, company annual reports, statistical data on pilot rates with the competitors in Canada, US and globally. Meetings with the Union representatives and pilots.

Air Canada has used third party involvement, specifically mediation.

“Executive summary of the tentative deal was posted on the strike site created by the union Sunday, revealing the under the deal, the airline’s pilots would receive a four-eyar comulative pay rate increase of approximately 41.7 per cent.”(Vallis, 2024).

Air Canada reported that the pay increase demanded was unreasonable.

Air Canada has been bargaining in good faith with ALPA for 15 months, meeting more than 100 tiems, and we remain engaged with the union” (Vallis, 2024)

“Air Canada on Thursday called for the federal government to be ready to intervene and order both sides to binding arbitration. But Prime Minister . . . said he wouldn’t tip the scales toward either party”(Vallis, 2024), which was different from the government action during VIA rail strike.

CLO 6: Recommend collaborative approaches to resolving conflict 

The conflict negotiations was between the executives of Air Canada and air pilots represented by UNIFOR union. Air Pilots went off work to the picket lines

Notice to Bargain was delivered on ………….Date

Notice to Dispute was delivered on …………Date

Conciliator Appointment was on ……………date

CLO 7: Analyze and develop effective approaches to managing interpersonal dynamics involved in negotiation situations 

“A ratification vote by the membership is expected to be conducted over the next month, and Air Canada’s board of directors would sign off on any deal” (Vallis, 2024).

The head of ….. said she would resign if the agreement was rejected

CLO 9: Identify best practices for handling challenging dispute resolution situations 

In this case non-involvement of government to mandate the return to work as in Via Rail was a successful strategy. We can easily loose Air Pilots to US, where the pay is higher, while the resource is scarce.

There was poor communication from Air Canada with the customers, for examples flights were canceled multiple times without warning. (Vallis, 2024).

References

Air Canada.(Sep. 15, 2024). Air Canada and its pilots reach a tentative deal. Air Canada.

Retrieved September 21, 2024 from http://https//www.aircanada.com/ca/en/aco/home/book/travel-news-and-updates/2024/ac-action.html#/

Air Canada. (June 07,2023). The negotiation process. Retrieved September 21, 2024 from

Background on negotiation process (aircanada.com)

Michael Rousseau. (Sep 16, 2024). Message from Michail Rousseau, Air Canada President and

CEO. AIR Canada. Retrieved September 21, 2024 from

https://media.aircanada.com/Message-from-Michael-Rousseau,-Air-Canada-President-and-CEO

Vallis Mary. (Sep 14, 2024). Air Canada work stoppage averted after tentative deal with pilots.

CBC. Retrieved 21 Sept 2024 from

www.cbc.ca/player/play/video/9.6510376#:~:text=Travellers%20can%20breathe%20a%20sigh,of%20its%20pilots%20on%20Sunday.

Appendix A-1 Canada Labour Code Negotiation Process

Appendix B: Chart of Issues – Text page #