Labour Minister Lisa Raitt has blocked any legal work stoppages at Air Canada by referring the ongoing conflict between the airline's management and its employees to the Canadian Industrial Relations Board.
The move from Ottawa comes as Air Canada says it will lock out its pilots on Monday at 12:10 a.m., just ten minutes after a strike deadline set by the company's mechanics, baggage handlers and cargo agents' union.
By sending the conflict with two unions -- pilots and ground crew -- to the labour board, Raitt has essentially put any legal strike or lockout on hold, as both parties must wait for the board to rule on the matter.
"Our government's concerned that the work stoppages are going to have an effect both on our national economy and of course on the Canadian travelling public," said Raitt.
The labour minister used a section of the labour code that centers on issues that relate to the health and safety of Canadians.
"The Canadian Labour Code is very clear that while the CIRB is considering the matter of what level of service an air carrier has to provide in the case of health and safety matters that they cannot affect a work stoppage," the minister said.
Raitt used the same labour mechanism to step in when Air Canada's flight attendants threatened to strike. However, the CIRB never issued a ruling in that case.
"It is still a valid question to me, especially when it comes to passengers and cargo and that's exactly why we're going to be sending it over to the CIRB," Raitt said Thursday.
But the president of the Air Canada Pilots Association said that Raitt is undermining the bargaining process.
"It is like negotiating with the monkey with the organ grinder standing behind you with the sword of Damocles over your head," he said Thursday.
"Air Canada needs to behave like the private sector corporation that it is and stop running to the government every time it has a problem, which, as you can see, is often."
On Wednesday, the company told the pilots union -- one of several unions in heated labour talks with the airline -- that it had until noon Thursday to accept what it called the "best, last and final" contract offer.
It had announced the plans for the lockout at about 1:30 p.m. Thursday, saying in a release that the move would "bring finality" to the negotiations and "bring stability for its customers."
Now, Air Canada has said that no disruptions will occur.
The two sides have been negotiating for 18 months as the pilots continued to work under a contract that expired in 2011.
In February, a federally-appointed mediator was assigned to help the two sides come to an agreement.
In a media release, the union points to executive salaries as a good place to start saving money: "On March 31 of this year, Air Canada president and CEO Calin Rovinescu will collect a $5-million retention bonus for remaining in his position for three years."
Meanwhile, 8,600 mechanics, baggage handlers and cargo agents had also been threatening to strike on Monday. Sticking points for that union include wages, pensions and mandatory overtime.
The upheaval comes as families in Ontario and some other districts prepare for March Break vacations, many involving the country's largest airline.
Raitt said the Air Canada call centre was bombarded by about 100,000 calls on Wednesday -- five times the number it gets on a regular day.
Vacation plans aren't the only reason to encourage workers to stay on the job, she said, noting many remote communities rely on Air Canada to fly people and goods in and out.
Over her tenure as labour minister, Raitt has developed a reputation for getting involved in labour disputes, weighing in on negotiations involving Air Canada's pilots, customer service agents and flight attendants.
She also led the charge to pass back-to-work legislation in the House of Commons when Canada Post workers went on strike last summer and then were locked out.
Labour groups have criticized the government for effectively removing their right to strike through legislation and pressure tactics.
Dave Ritchie -- vice-president of Air Canada's mechanics, baggage handlers and cargo agents union -- said that Raitt is simply dragging out the bargaining process by stepping in.
"I'm disappointed because I think what she's done is that she's taken the pressure off both sides to come to an agreement," Ritchie said.
"I would have thought that had the pressure been there and building that we would have had a better chance of reaching an agreement sooner."
But even with a new contract, there could be long-term turbulence at the airline, said a financial analyst.
"A major concern for Air Canada, once the new contracts are finally in place, will be its labour relations and employee morale, both of which have undoubtedly suffered significantly throughout this process," said National Bank Financial analyst Cameron Doerksen.
"Even without the labour issues, Air Canada faces major challenges including low profitability levels and ever-increasing competition."
With a report from The Canadian Press
