Bulletin: Air Canada CCAA Final Funds Distribution
October 17, 2019 -In 2003, Air Canada filed for and obtained Bankruptcy protection under the Company Creditors Arrangement Act (CCAA). Over the course of the following years, the Machinists Union (IAMAW) arrived at a settlement of claims filed by the Union in those proceedings, including a claim for the restructuring of the Collective Agreement. Between 2004 and 2007, the Union disbursed cheques of $2,153.82 to approximately 11,500 members of the Union in relation to the restructuring claim. This amount was based on our estimate at that time of the settlement funds that would remain after the payment of individual and group grievance claims and the correction of any errors or omissions.
Subsequently, over the following several years, there were several further distributions to individuals and groups in relation to the approximately 2,600 grievances adjudicated or otherwise affected by the bankruptcy proceedings, including a distribution to 4,800 former Canadian Airlines employees (arising from a grievance).
There were a number of legal and Board challenges over the process the union undertook to distribute the funds ( equal distribution to all JAMA W members on the Air Canada payroll as of September 30, 2004 ), and these worked their way through the Canada Industrial Relations Board and the courts over a period of several years. Ultimately the decision of the Canada Industrial Relations Board (CIRB) affirming the process the JAMA W utilized to make the distribution was upheld. At this point all litigation resulting from legal challenges to the original distribution decision has been resolved.
We now intend to distribute the remaining funds. The funds will be distributed to the same IAMAW members and former members who were deemed eligible and received the funds in the original distribution, in accordance with the original process and decision. You do not have to be a current active employee at this time; in accordance with the original distribution arrangement, you must have been an employee on the payroll as of Sept 30, 2004.
The cheques will be sent to the current mailing address of all recipients who were covered by the original settlement. The amount of the cheque is expected to be just over $300 .00 to each eligible member. No action is required at this time, and we will communicate with another Bulletin prior to the mailing of cheques, which we expect to occur before the end of this year.
Yours in solidarity
IAM Canadian General Vice President
This article was originally posted on the IAM Canada website. View the original post here: Bulletin: Air Canada CCAA Final Funds Distribution