There was much said in the news media when Calin Rovinescu was appointed as President and CEO at the end of March, specifically with many believing he was being brought in to direct them through anouther CCAA filing (Canadian version of Chapter 11 bankruptcy).
However there was an announcement today that Air Canada has come to an agreement with three unions on Pension funding, which was though by many to be a main sticking issue in contract negotiations with the unions this summer. Part of this agreement seems to include the employees becoming part owners in the airline.
In my opinion, having the unions and their members holding equity in the company is a smart move. There are many complaints both from employees and customers (whether they are valid or not is a discussion for another day) that the union culture is detrimental to Air Canada and its customers. Perhaps being part owners of the airline will help them see things in a different light, and will make them feel that they have a vested interest in the success of the airline.
Then again, shouldn't that have been the case when the survival of the airline had an effect on their wage and their pensions?
