Air Canada Labor Fight Spills Over Onto Fliers


Air Canada (AC/A)'s customers are becoming collateral damage in a labor standoff between the country's largest carrier and its biggest unions.

Even after the federal government rushed to Air Canada's aid with a back-to-work bill, passengers still faced flight cancellations as ground-crew employees staged wildcat strikes on March 23. That was five days after so many pilots called in sick that the airline had to trim its schedule.

...The week was "probably the worst for Air Canada since they filed in 2004," said Karl Moore, a professor of business strategy at Montreal's McGill University who specializes in the airline industry. "They are going to take a short-term hit for this. Obviously there will be some labor problems for a while."

Read full article: Bloomberg Businessweek, March 26, 2012