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WestJet strike averted as Ottawa imposes arbitration on airline, mechanics

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A possible long-weekend strike at WestJet has been averted.

The federal government on Thursday directed the airline and plane mechanics into binding arbitration, steering clear of a work stoppage that threatened to disrupt flights for hundreds of thousands of travellers over the Canada Day long weekend.

In a late-afternoon social media post, Labour Minister Seamus O’Regan said he was invoking his authority under the Canada Labour Code to end the impasse between the two sides as the clock ticked down toward a Friday evening deadline.

“Strong first agreements set unions and employers on the path of collective bargaining,” O’Regan said in a statement.

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“They set a strong foundation to build upon at the bargaining table and bring the parties one step closer to a strong second agreement and an even stronger third agreement — reached at the bargaining table. That’s what we want to see here.”

WestJet and the Aircraft Mechanics Fraternal Association both said they will abide by the order, with strikes and lockouts off the table.

“With the government’s actions, the summer travel plans of Canadians have been protected and we have a path to resolution,” said WestJet Airlines president Diederik Pen. No more flight cancellations are planned, after more than a dozen on Thursday.

The union, which had opposed arbitration by the country’s labour tribunal, took a less upbeat tone.

“There is no modern precedent for the minister’s action,” the association’s negotiating committee said in a statement. But it added that it will tell its approximately 680 workers “to refrain from any unlawful job action.”

Union members voted overwhelmingly to reject a tentative deal earlier this month and fought WestJet’s request for intervention by the Canada Industrial Relations Board.

In response to that request, the mechanics association served the company with an initial 72-hour strike notice on June 17, prompting WestJet to cancel nearly 50 flights last week before both sides agreed to resume negotiations.

The second strike notice came Tuesday amid tense negotiations over the collective agreement — the first between WestJet and the union.

The Calgary-based carrier had already begun to cancel flights this week, calling off roughly 25 trips on Thursday and Friday in anticipation of possible job action as early as 5:30 p.m. MDT on Friday. Affecting some 3,300 customers, WestJet’s decision to start concentrating its 180-plane fleet sought to avoid leaving aircraft in far-flung locations and stranding passengers and crew in the event of a work stoppage.

As negotiations around the contract dragged on in a windowless conference room at a hotel near Toronto’s Pearson airport, the tone of statements put out by the two sides grew chippier.

On Wednesday, the airline asked the tribunal to quash the latest strike notice and bar future ones — except on approval from the labour board. The affidavit from lawyer Simon Mortimer argued that the union was “moving backward” in the talks, pointing to one counter-offer from workers that called for “a 50 per cent cost increase” over the tentative agreement.

The union’s bargaining demands showed a failure to act in good faith and its public statements included “inflammatory” and “offensive” elements, the document claimed.

The union — the majority of its WestJet members are aircraft maintenance engineers (AMEs) who inspect each active plane daily — claimed the carrier was resorting to “false accusations” and “brinksmanship.”

In a statement, the mechanics’ negotiating committee retorted: “WestJet alleges that an AME strike would place the ‘company and the travelling public in peril at a critical time.’ It is difficult to conceive of a more inflammatory or offensive comment.”

Ian Evershed, a union representative involved in the talks, cited “some pretty intense moments” during the negotiations.

“We just aren’t seeing any progress,” he said in phone interview Wednesday.

Just over a year ago, the airline found itself in a similar situation after some 1,800 pilots threatened to walk off the job. WestJet averted a strike after reaching a last-minute deal in the wee hours ahead of a long weekend in May, but not before cancelling more than 230 flights and disrupting the travel plans of thousands of passengers.

The Canada Industrial Relations Board could opt not to suspend the right to a work stoppage as it hammers out a contract, but precedent and statements from the two parties suggests that outcome is a non-starter.

Both sides are slated to meet with the tribunal on Friday. “The board will then determine next steps or make the necessary rulings, as appropriate,” tribunal spokesman Jean-Daniel Tardif said in an email.

The mechanics are hoping for a raise well beyond WestJet’s initial offer of a roughly 10 per cent pay hike — it put forward a bigger one this week — in the first year of a five-and-a-half-year contract, Evershed said. He also pointed to counterparts in the United States who he said earn more than 1.5 times the current compensation level.

WestJet said it has offered a 12.5 per cent wage hike in the first year of the contract, and a compounded wage increase of 23 per cent over the rest of the term.

It also said the deal would protect work-life balance, ensure job security and attract more workers to the technical operations team.

This report by The Canadian Press was first published June 27, 2024.

Christopher Reynolds, The Canadian Press
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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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