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Business

Time: 2024-07-03

WestJet Labor Strike Market Impact: Insights and Trends Revealed

WestJet Labor Strike Market Impact: Insights and Trends Revealed
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WestJet Strike Action Impacts Canada's Air Travel Industry

WestJet Labor Strike Market Impact: Insights and Trends Revealed

Labor negotiations between WestJet, Canada's second-largest airline, and the Aircraft Mechanics Fraternal Association remain at a standstill after the union called a surprise strike last week, forcing more than 400 flight cancellations and delays over the weekend. The union represents nearly 700 aircraft engineers and technicians who walked off the job Friday, demanding perks beyond the offered 23-per-cent wage increase over the five-and-a half-year term of their collective agreement.

Inspecting, maintaining, and repairing aircraft is admittedly no walk in the park. The work can be grueling, requires focus and must be performed regardless of whether mother nature co-operates. WestJet said it reached a deal with the workers to end the strike, but more than 800 flights had already been canceled, and there would still be flight disruptions in the week ahead as planes are brought back online.

The strike follows back-and-forth talks between the union and the airline stretching back to September 2023 when representatives met for an initial bargaining session. At the meeting, according to a memo from the association, union representatives raised concerns including furloughs out of seniority order, irregularities in pay scale, and work privileges that have been eliminated without notice or rationale. In addition to wage increases, the union is seeking protections for certain positions and improved benefits such as health care.

New York CNN reported that WestJet has repeatedly condemned the strike, which comes during a long holiday weekend in Canada. The company says the strike will affect about 250,000 travelers' plans. The airline says it has had to cancel more than 410 flights between Thursday and Saturday. Data from flight tracker FlightAware shows WestJet on Sunday had canceled at least 343 flights, constituting 77% of its fleet. The airline's regional subsidiary, WestJet Encore, has canceled at least 80 flights.

On Sunday, the union told CNN the parties are separated by a first-year economic difference of approximately 7%, less than $8 million. The union detailed a drawn-out and unproductive mediation process over the weekend, expressing concerns about WestJet executives calling it a night after waiting hours in a virtual breakout room.

In conclusion, the strike has caused major disruptions in airports across Canada, with significant service suspensions impacting Calgary International Airport, Toronto Pearson, Vancouver, and Edmonton international airports. The industrial relations board has ruled the strike as lawful, allowing the union to continue its legal strike as negotiations continue. The impact of the strike on Canada's air travel industry is significant, with thousands of travelers affected and ongoing talks to resolve the labor dispute.

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