Tuesday, November 29, 2005

All that Jazz

Here is how Income Trusts work for big capital. Lets look at ACE the holding company for Air Canada. Not only did they manage to manuver out of bankruptcy into profitability by getting concessions from their workers they still maintain a virtual monopoly in the air transport field in Canada. Now thankss to the Liberals recent tax give away they are creating an Income Trust, which is a tax dodge, out of their regional carrier Jazz which competes with West Jet. The advantage, besides lots of new capital and no taxes? Well more concessions from workers.

New Jazz income fund to add planes, routes

The prospectus said Jazz has a pay scale in place that's competitive with U.S. regional carriers, noting that new Jazz employees "hired after May, 2004, excluding pilots, are being hired on this lower scale."

In the case of Jazz pilots, they have agreed to "significant productivity gains," including a system where there is "one pay scale based on seniority and status, regardless of the type of aircraft flown," the document added.

Jazz's work force on Oct. 31 was 3,732 employees, down from 4,086 in April, 2003, when Air Canada sought court protection from creditors. Air Canada emerged from bankruptcy protection in September, 2004.

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