Auto Workers, Air Canada reach tentative deal (updated)

The Canadian Auto Workers and Air Canada reached a tentative deal today to send 3,800 employees at nine airports back to work.

The news came just hours after the federal government introduced legislation that would force striking Air Canada employees back to work.

Although Air Canada says that its operations are running smoothly with only one percent of its flights affected by the strike, Labour Minister Lisa Raitt feels an extended strike could hinder Canada's economic recovery.

Neither the New Democrats nor the Liberals support the legislation with New Democrat finance critic Peggy Nash stating the federal government is siding with the employer and acting too hastily.

For more on this breaking story, please go to your preferred online or broadcast source for news.

Full text of a news releases issued today by Air Canada follows.

***************************** Air Canada and CAW reach tentative agreement on new contract

MONTREAL - Air Canada today announced that it has reached a tentative collective agreement with the Canadian Auto Workers union (CAW) which ends a three-day walkout of the airline's call centre and airport check-in and gate agents in Canada. 

Employees are expected to return to work effective Friday morning June17, 2011.

The parties have reached a tentative agreement on all elements of a new collective agreement, with the exception of the pension arrangements applicable to employees hired after the date of ratification of the collective agreement. 

This one issue will be referred to binding arbitration for resolution. 

The tentative agreement maintains a defined benefit pension plan for all current employees.

The agreement is subject to final documentation, ratification by union membership and approval by the Air Canada board of directors.

Further details of this agreement covering Air Canada's approximately 3,800 call centre and airport customer service agents in Canada will not be released pending this ratification and board approval.

"We are very pleased to have reached a tentative agreement with the CAW. The agreement will help ensure the long-term sustainability of Air Canada while maintaining industry-leading compensation and benefits for our employees," said Duncan Dee, executive vice-president and chief operating officer. "It is business as usual at Air Canada. We want to thank our customers for their understanding and loyalty, and we appreciate their ongoing support. We also want to recognize our employees including pilots, flight attendants, maintenance and ramp workers, and especially management personnel for their dedication and support for going 'above and beyond' to keep the airline operating."

Air Canada continues to operate its regular schedule and recommends that customers, prior to leaving for the airport, consult their flight status information online at aircanda.com or on a mobile device where they may also check-in within 24 hours of their flight departure for added convenience.

Air Canada is Canada's largest domestic and international full-service airline providing scheduled and charter air transportation for passengers and cargo to more than 175 destinations on five continents. 

Canada's flag carrier is the 15th largest commercial airline in the world and serves 33 million customers annually.

Air Canada is a founding member of Star Alliance. 

For more information on Air Canada visit aircanada.com.

Follow @AirCanada on Twitter and Facebook.

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