by Mark Sproxton
Northern News Services

NNSL (DEC 09/96) - Northern customers have kept their faith in Canadian Airlines, according to travel agencies across the NWT.

While some agents report a slight drop in the number of bookings with the airline, not much has changed since the financial troubles of the carrier were thrown into the national media spotlight last month.

"In the beginning people were concerned about their points," said Launda Madsen, office manager of Top of the World Travel in Cambridge Bay. "I don't think anybody really believes it will go under. "There has not been a drop in business."

Allen Stanzell, Northern operations manager for Mack Travel, which has offices in the Western Arctic, shared the same opinion.

"Lots of people were concerned about flights they have booked, but I think the initial questions may have been answered," he said. "We haven't had a lot lately. Things are pretty much normal."

Erie Leighfield of Qamutik Travel Ltd. in Iqaluit, however, has seen a slightly less optimistic view in the Baffin.

"People are still asking for Canadian, but bookings are down," she said.

Canadian North's parent airline is Canadian International. Last week Kelly Kaylo, Canadian North's director of sales said there will be no immediate changes to any routes the airline flies.

On the national front, Labor Minister Alfonso Gagliano has moved to force a vote by the Canadian Auto Workers union on the Canadian Airlines restructuring plan after a high-level meeting failed to find compromise last Wednesday.

Gagliano told the Commons he's directed the Canada Labor Relations Board to organize the vote in a move that is believed to be unprecedented in Canadian labor history.

The labor minister said he acted because 16,000 jobs are at stake. There was no immediate word on when the labor board would call the vote.

Earlier, a meeting to save Canadian Airlines failed to find an agreement. An impasse over wage cuts that threatens the company's survival remains.

Buzz Hargrove of the Canadian Auto Workers union said he would be willing to compromise if the federal government gives the airline more financial help, but there is no indication that is going to happen.

"There is no money in the envelope," said Hargrove, the union's president. "It is frustrating as hell."

Hargrove met with Canadian president Kevin Benson and Transport Minister David Anderson for 30 minutes to try to find a solution to the problem.

He said the 3,700 ticket agents he represents have given enough over the years to keep the company in business.

"Our people have given up, given up and given up," said Hargrove, who added Anderson gave no sign he is willing to give Canadian further financial assistance.

Benson said he's going back to Calgary to look at the airline's options, but the situation looks bad.

"If it is not mortal, it's pretty close to it," he said.

He accused Hargrove of letting the company die for $20 a week, a reference to the pay cut Canadian proposed for members of Hargrove's union.

Hargrove has remained defiant in refusing to give up wage concessions to save the airline and 16,400 jobs. The other five unions at Canadian have accepted pay cuts.

Benson has told all six unions representing his employees they must accept a wage cut as a key condition of persuading creditors to accept a financial restructuring package. So far, the federal government has said it would give Canadian a break on fuel taxes that Hargrove said would save the company about $20 million a year, but that's not enough for the autoworkers.

AMR Corp., parent of American Airlines and holder of a third of Canadian's stock, has said it would help out Canadian Airlines by cutting management fees by $48 million a year for the next four years if all unions accept wage cuts.

(With files from Canadian Press.)