“A bad idea”: Union urges gov’t, airport authorities to say no to privatization

Ottawa’s plan to open Canada’s airports to private investment is a “bad idea” that will siphon off profits, suppress wages, and increase costs for travellers, says Unifor.

"If your goal is to improve a public service, then pushing for privatization is the fastest way to fail," said Unifor National President Lana Payne in a press release Monday (March 10). "Privatization of Canada's critical infrastructure, like our airports, can put profit over public safety, removes public accountability, and as many airport workers know, suppresses wages and working conditions for those affected."

The government’s statement this week does not change the existing governance model or any laws, but explicitly outlines ways that airports can partner with private entities to further privatize operations under existing legislation, the union says.

Unifor urges airport authorities not to follow through with additional steps to privatize National Airport System (NAS) airports.

"We're in a national crisis, with Canada's very sovereignty being threatened, and the direction from the top is to sell off more of our transportation infrastructure?" stated Payne. "Privatization is not free money, we always pay it back with interest, and often with regret. The most effective way to prevent privatization remorse in the future is to not sell off public infrastructure today. Just say no."

Unifor's Air Transportation Workers' Charter of Rights is advocating for changes to improve working conditions that will directly lead to a better travel experience.

A "clear direction"

Last Friday, Minister of Innovation, Science and Industry François-Philippe Champagne released a policy statement on investment for Canada's National Airports System airports as part of a commitment from Budget 2024 to support airports.

The National Airports System is made up of 26 airports, 22 of which are run by private, not-for-profit airport authorities.

While these authorities are operationally and financially independent, the airports themselves are located on land leased from the Government of Canada.

The latest policy statement highlights existing flexibilities under the governance model for Canada's airport authorities to attract investment, including from pension funds.

It outlines three avenues, subleases, subcontracts and subsidiaries, for private investors and developers to collaborate with airport authorities.

The policy statement also indicates that the government intends to explore negotiations to extend airport authority leases to facilitate third party investment and development projects on airport lands.

"Canada's airport operators have built world-class infrastructure, connecting people, services, and goods. As our air sector continues to grow, investment from various sources will be essential to ensure that our airports can meet the needs of Canadians,” stated Minister Champagne. “This policy statement provides clear direction on the many ways private investors can work with National Airports System airport authorities to the benefit of both the airports and the communities they serve."

Both Toronto and Montreal airports applaud the news, saying the statement offers clarification for investors as both facilities modernize.

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