Thorunn Howatt
Northern News Services

Yellowknife (Apr 29/02) - Nav Canada wants its employees to help it deal with a $145-million revenue shortfall it's blaming on the Sept. 11 tragedy.

"We have met with our employee bargaining agents to discuss how they can contribute to this plan. We have met with customers, who agreed to the service charge increase," said Nav Canada president and chief executive officer John Crichton.

Since salaries and benefits make up 72 per cent of operating expenses, the company asked unions not to renegotiate contracts. New collective agreements would see negotiated pay raises starting Sept. 1, 2002.

So far only the Association of Public Service Financial Administrators has agreed to this proposal and signed a new collective agreement.

"We've asked the unions to extend the collective agreements and for us it's an important part of our mitigation plan so that we can compensate for the revenue shortfall that we expected," said Nav Can spokesperson Louis Garneau.

Nav Canada put in place an action plan to deal with the downturn that includes $85 million in cost reductions; $30 million in revenue through a draw-down of the company's rate stabilization account; and $30 million through a six per cent service charge increase.

Last year, Nav Can installed a new radar system in Yellowknife as part of its $50-million radar expansion program. In addition, it is building a new radar site in Iqaluit. Coral Harbour and Arviat are being considered for future installations. Air traffic volumes were 16 per cent below Nav Can's original estimates in the first six months of the current fiscal year. The loss in revenues created a growing financial deficit.

Nav Canada is a private corporation that looks after civil air navigation services like air traffic control, flight information, weather briefings and airport advisory services.