Screen capture of AllianceAtlantis.com website
Alliance Atlantis website

24 December 2007

Members at Alliance Atlantis
reach 1st contract deal just as CRTC
approves takeover by CanWest

Canadian Media Guild | CWA Canada Local 30213

It would be entirely understandable if unionized staff at Alliance Atlantis Communications can't quite decide whether 2008 should be welcomed with cheers or jeers.

Last week, the 100 members of the Canadian Media Guild (CMG) learned two things: they finally had a first collective agreement, and the federal broadcast regulator had given its approval for CanWest Global Corporation to become their new corporate master.

Related Reading
Globe and Mail
CanWest ruling seen as precedent setting


News release
CRTC announces its decision


Intervention
The Canadian Media Guild's submission to the CRTC


In one of the few public notes of protest at the decision announced Thursday by the Canadian Radio-television Communications Commission (CRTC), the CMG accused the regulator of demonstrating a "disregard for the principle of Canadian ownership of our media." The Broadcasting Act states that the country's broadcast system must be effectively owned and controlled by Canadians.

The Guild called on Parliament to review the rules on foreign ownership in light of the CRTC decision that allows U.S. investment bank Goldman Sachs to finance two-thirds of the $1.5-billion deal yet hold only 33 per cent of the voting shares.

Only a day earlier, the CMG announced that a tentative deal on a first contract for AAC staff had been reached after 16 months of negotiations. The bargaining committee said that a proposal the night before by management was a significant improvement on one received Dec. 14.

Early in the new year, members at AAC will vote on whether to ratify the deal, which contains a three-per-cent salary increase (retroactive to Jan. 1, 2007) and 2.5-per-cent increases for each of 2008 and 2009, with another 3.0 per cent on Jan. 1, 2010.

Although the Guild will continue to represent its members at Alliance Atlantis and the ownership change will not affect implementation of the collective agreement, there are fears that CanWest will milk AAC for all it can.

“We worry that the sale will reduce competition in the specialty sector and that the Alliance Atlantis channels will be used as cash cows to finance the growing CanWest media empire,” says Lise Lareau, national president of the CMG. “That will likely mean even less original programming for Canadians and fewer jobs in this important sector of the economy.”

The AAC employees represented by the Guild are all located in Toronto, where they work in master control, engineering, post-production, closed captioning, library, presentation, quality control and dubbing.

AAC is the distributor of major films in Canada and operates 13 television channels, including the Food Network, History Television, Showcase and BBC Canada. The company's website notes that it "is dedicated to supporting Canadian culture. Alliance Atlantis' Showcase is the only Canadian network, including the CBC, to air an entirely Canadian drama schedule in the heart of prime time."

Lareau says the CMG is "very concerned about the further concentration of media ownership this deal represents. The union had urged the CRTC to impose measures to protect the distinctiveness of the Alliance Atlantis specialty stations. For example, the CRTC could have restricted the amount of programming repeated between CanWest’s existing conventional stations and the specialty channels. It has not."

In announcing the decision last week, chairman Konrad von Finckenstein said the CRTC was "satisfied that this transaction meets the requirements for Canadian control both in law and fact,” and that Goldman Sachs would not control the Canadian broadcasting operations.

Lareau, however, disagrees.

“The companies have tied themselves into pretzels to try to fit with the letter of the law,” she says. “But the spirit of that law is clearly broken. After all, we all know that Goldman Sachs will hold the purse strings for the foreseeable future.”