Air Canada 2007 Annual Report Download - page 15

Management’s Discussion and Analysis of Results and Financial Condition
15
OASIS
Online Aircraft Support Integrated Solution, or OASIS, is a corporate initiative to upgrade the current legacy
maintenance and engineering system - referred to as ARTOS. The maintenance and engineering system provides the
organization with fl eet status and maintenance planning; the technical records of the fl eet; confi guration control and
airworthiness compliance; materials management and planning.
With the increasing complexity of today’s operation, the decision was made to replace the existing applications
with a cost competitive and integrated platform. The platform is designed to provide the functionality required by
Air Canada’s maintenance division as well as a product foundation which can be leveraged to implement future
enhancements and is also designed to provide Air Canada with improved aircraft availability, resource and asset
effi ciencies and management information while reducing information technology expenses.
In 2008, we begin the design phase of the project with anticipated rollout of the new system beginning in early 2009
and subsequent releases through the remainder of 2009.
■ Maintaining positive employee and labour relations
We have collective bargaining agreements with our pilots, fl ight attendants, maintenance personnel, certain clerical
and fi nance personnel, customer service agents, ramp and cargo employees, dispatchers and crew schedulers which
were concluded in 2003 and 2004 and which expire in 2009. No strikes or lock-outs may lawfully occur during the
term of the collective agreements. On April 10, 2007, we announced that the wage review process agreed to with
all labour groups in 2003 had concluded. The average of the wage adjustment agreements and awards represents an
increase of approximately 5% over the three-year period mid-2006 – mid-2009.
In 2005, we introduced incentive programs and a profi t sharing plan in order to engage employees in their valuable role
to ensure Air Canada’s success. The “Sharing Our Success” Plan emphasizes the relationship between performance and
personal rewards by providing employees with fi nancial rewards on a monthly basis when operational performance
levels are achieved. The plans also permit employees to share in the fi scal year-end pre-tax profi ts when corporate,
fi nancial and operational performance levels are achieved. In each case, employees receive the greater of the amounts
payable under the “Sharing Our Success” Plan and the annual profi t sharing plan. In 2007, a total of $29.2 million was
paid in advance under the “Sharing Our Success” Plan.
As part of our ongoing objective to improve overall employee relations throughout the organization, we completed a
two-day training program for substantially all management employees, including executive and senior management.
Called “Relationship Matters”, this program focused on skills training around the principles of leadership, effective
communication and taking ownership and accountability for one’s own area of responsibility. A survey of participants
has shown that a majority of participating managers felt that the training has enhanced their leadership and
communication skills and behaviours and has improved the communication at all levels within the organization.
We are planning to offer this program in the fi rst quarter of 2008 to our frontline unionized employees in lead
functions.
In the latter part of 2007, we commenced a second training program that focuses on the institutional relationships
between Air Canada and its unions. Called “Labour Relationships Matter”, this program provides participants with
knowledge, skills and tools to build and maintain authentic and constructive relationships with union representatives
and unionized employees in accordance with Air Canada’s labour relations philosophy. Executive management has
completed the training and, over the course of the fi rst two quarters of 2008, all management employees including
senior management will participate in the program.
In addition, we conducted an extensive survey of our employee population, with focus groups and telephone
interviews conducted by The Strategic Counsel. The survey was designed to identify the most signifi cant and
prevalent employee concerns to enable us to proactively address these issues wherever possible in order to benefi t
our employees, employee relations and our operations.
As part of our continued focus on employee communication, Air Canada has initiated a new employee communication
medium. Supplementing the “Employee Annual Report” launched in 2006, the “Employee Mid-Year Report” provides
all employees with a timely update on the progress on all aspects of Air Canada’s business strategy.