Air Canada - Organizational Changes
Company Overview
Air Canada was established by Canadian parliament on April 10, 1937. The company was initially incorporated under the Trans-Canada Air Lines Act, as Canada’s national airline service. At the time of incorporation, Air Canada was established as a wholly-owned subsidiary of the Canadian National Railway Corporation.(AIF) In 1977, Air Canada reorganized under the Air Canada Act, at which time it became property of the Canadian government. In 1988, Air Canada was reorganized under the Canada Business Corporations Act, and shares were sold to the public. On April 1, 2003, Air Canada filed for creditor protection and on September 30 2004, ACE Aviation Holdings Inc. became successor and parent holding company of the reorganized Air Canada and its subsidiaries. Various Air Canada subsidiaries include Aeroplan, Air Canada Jazz, Air Canada Technical Services, and Air Canada Cargo. Finally, Air Canada “is Canada’s largest domestic and international provider of scheduled passenger services in the domestic market”.(AIF)
At the end of 2004, Air Canada employed 33, 124 employees worldwide. Air Canada operates within a unique lexicon of human resource relationships; the company employs workers from ten different unions, some of which include Canadian Auto Workers (CAW), Canadian Union of Public Employees (CUPE), International Association of Machinists and Aerospace Workers (ACPA), and Air Canada Pilots Association (ACPA). Historically, the relationship between employees, their respective unions, and Air Canada top management has been characterized by considerable animosity. These antagonistic relations had a direct impact upon the nature and outcome of organizational change at Air Canada.
Three Influential Parties
It is important to note that during the restructuring process, Air Canada’s top management found itself trying to appease the demands of two contrasting bodies: the employees, represented by their respective unions, each with
Air Canada was established by Canadian parliament on April 10, 1937. The company was initially incorporated under the Trans-Canada Air Lines Act, as Canada’s national airline service. At the time of incorporation, Air Canada was established as a wholly-owned subsidiary of the Canadian National Railway Corporation.(AIF) In 1977, Air Canada reorganized under the Air Canada Act, at which time it became property of the Canadian government. In 1988, Air Canada was reorganized under the Canada Business Corporations Act, and shares were sold to the public. On April 1, 2003, Air Canada filed for creditor protection and on September 30 2004, ACE Aviation Holdings Inc. became successor and parent holding company of the reorganized Air Canada and its subsidiaries. Various Air Canada subsidiaries include Aeroplan, Air Canada Jazz, Air Canada Technical Services, and Air Canada Cargo. Finally, Air Canada “is Canada’s largest domestic and international provider of scheduled passenger services in the domestic market”.(AIF)
At the end of 2004, Air Canada employed 33, 124 employees worldwide. Air Canada operates within a unique lexicon of human resource relationships; the company employs workers from ten different unions, some of which include Canadian Auto Workers (CAW), Canadian Union of Public Employees (CUPE), International Association of Machinists and Aerospace Workers (ACPA), and Air Canada Pilots Association (ACPA). Historically, the relationship between employees, their respective unions, and Air Canada top management has been characterized by considerable animosity. These antagonistic relations had a direct impact upon the nature and outcome of organizational change at Air Canada.
Three Influential Parties
It is important to note that during the restructuring process, Air Canada’s top management found itself trying to appease the demands of two contrasting bodies: the employees, represented by their respective unions, each with