US embassy cable - 04HALIFAX190

UNCLAS HALIFAX 000190 
 
SIPDIS 
 
FOR WHA/CAN 
 
E.O. 12958: N/A 
TAGS: ELAB, ECPS, EIND, CA, Labor 
SUBJECT: NO END IN SIGHT TO LENGTHY ATLANTIC CANADA TELECOMS STRIKE 
 
1.  SUMMARY:  How Bell Canada fares in its talks with its 
unionized workforce could have an impact on a 13-week strike by 
communication workers in Atlantic Canada, employed by Aliant 
Communications.  Industry watchers believe Bell, the major 
shareholder in Aliant, is pressuring the Aliant negotiators not 
to make any concessions to its workforce's demands for fear of a 
ripple effect in its own labor negotiations in Ontario.  END 
SUMMARY. 
 
2.  Representatives of Aliant, the largest communication service 
company in Atlantic Canada, and its striking unions broke off 
talks on July 16 with no progress on ending a prolonged labor 
dispute.  The 4,000 unionized workers have been on strike since 
April 23 when both sides could not reach an agreement on a new 
contract.  Issues include health and pension benefits, higher 
wages and limits on contracting out services.  The union members 
account for two-thirds of the company's workforce and are 
presented by the Council of Atlantic Telecommunications Unions. 
There are no other meetings planned and union members are vowing 
to stay on the picket line indefinitely. 
 
3.  Industry watchers believe that Aliant's failure to reach an 
agreement with its union is linked to Bell Canada's negotiations 
with its own unions in Central Canada.  Bell is the majority 
shareholder in Aliant and analysts believe that Bell does not 
want the Aliant negotiators to make any concessions to its 
workforce until after Bell has concluded its own deal.  In the 
meantime Aliant has retrained and reassigned its 1800 management 
employees, but the company conceded recently that it was 
suffering as well as the union members from the effects of the 
strike.  Since the company is the major provider for telephone, 
wireless, Internet, e-commerce and network services in Atlantic 
Canada, there are worries over the long term effect on the 
communications industry in the region.  Under the circumstances 
Aliant officials, union leaders, industry analysts and consumers 
alike will be highly interested bystanders as the Bell labor 
situation unfolds. 
 
HILL