Air Canada strike threat raises Ottawa's concern

The federal government is worried about the possibility of a strike at Air Canada as early as next week, and says a work stoppage would not be in the best interests of the Canadian public. "The government is concerned that a strike is possible and is taking this situation very seriously," Labour Minister Lisa Raitt said Wednesday. March Break travel plans for Canadians were thrown into disarray late Tuesday when the union that represents 8,600 mechanics, baggage handlers and cargo agents at Air Canada issued notice they will go on strike as of 12:01 a.m. ET on March 12 unless a new contract is signed by then. The union is trying to win back pay and concessions it gave up to help the airline restructure under bankruptcy protection in 2003 and 2004. In a statement posted on its website, the International Association of Machinists and Aerospace Workers Local 2323 says, "We are the largest unionized workforce at Air Canada, without us, it's all grounded." In its financial report issued last month, Air Canada said it lost $60 million in the fourth quarter of 2011 and $249 million for the year. Last summer, Ottawa passed back-to-work legislation to mandate locked-out Canada Post employees back to work. There is speculation that parliamentarians may take a similar action to ensure Canadian business and recreational travellers are not affected by a possible strike at Canada's largest airline. But in her statement on Wednesday, Labour Minister Lisa Raitt stopped well short of that and urged both parties to continue bargaining and reach a new collective agreement as soon as possible. The minister said she is closely monitoring the situation, but "the best solution is the one that the parties reach themselves… A work stoppage is not in the best interests of Canadian public or Canadian businesses."