Post by
TELEMARKER on Sep 16, 2024 9:43am
stockwatch.com
Globe says Air Canada badly misread the political room
2024-09-16 09:28 ET - In the News
he Globe and Mail reports in its Monday edition that Air Canada may have been banking on the federal government intervening in its contract dispute with its pilots. Guest columnist Steven Tufts writes that on Friday Prime Minister Justin Trudeau explicitly ruled out intervention. It is therefore unsurprising that the airline reached a tentative agreement with the union on Sunday. Air Canada executives are going to have to live with the fact that pilots are going to cost more. Air Canada's strategy miscalculated government willingness to refer negotiations to arbitration to avoid a strike. It failed to incorporate the instability of minority governments and the surprising pro-worker turn of Conservative leader Pierre Poilievre. While the Liberal government has used Section 107 over the past few months to end disputes, they now risk political suicide if they do so again. The Liberals no longer have a confidence-and-supply agreement with the NDP. If the Liberals pre-emptively used Section 107 to send the dispute to arbitration, they would be cast as anti-worker by other parties. In the current political environment, with everyone courting the union vote, such a label is especially dangerous for a minority government.
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