Taking a bullet for the Boss: employers in a tight spot financially are turning to their workers to help them out. The employers say they don't have enough money to pay current wages, so workers are asked to take a pay cut to keep the business going.(Work-Company Bailouts)

Canada and the World Backgrounder, October, 2004

Air Canada has been on the financial ropes for years. To a large extent the airline's troubles can be traced to a management decision to swallow its competitor, Canadian Airlines. Rescue attempts have hinged on huge wage give-backs from Air Canada's employees. Difficult decision for the employees--take a hefty pay cut and keep your job or refuse the pay cut and maybe not have a job at all. Air Canada desperately needed new financing, but bankers said it had to trim its operating costs before they would loan it any money. In June 2003, thousands of union workers reluctantly agreed to concessions that allowed the company to reduce its costs by $1.1 billion.

The airline also cut hundreds of millions of dollars in supplier costs, interest payments, and aircraft...

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