TORONTO, April 3 (UPI) -- A looming confrontation with labor unions has prompted a wealthy investor to walk away from saving Air Canada from its financial woes.
Hong Kong's Victor Li said he was abandoning his planned $650-million investment, the Toronto Globe and Mail reported Saturday. Li said Friday he was taking the action because of a likely confrontation with labor unions.
Air Canada has been operating under protection from its creditors for one year. But some labor officials and industry observers speculate Li may be just threatening to walk as a bargaining tactic to get Air Canada's unions to agree to changes he is demanding om the company's pension plan.
Gary Fane, national director for the transportation industry of the Canadian Auto Workers union, said, "It sounds like if all the unions got on their knees and said, 'Please let me give you more concessions,' then they may not leave."
The CAW represents about 7,500 of Air Canada's approximately 30,000 employees.
