Air Canada continues to make progress with labour groups, reaching a tentative agreement with its 6,700 flight attendants to extend their current contract.
The latest development in flight attendant talks follows a pension moratorium agreement Air Canada reached with the Canadian Union of Public Employees (CUPE) representing the attendants on 15 June.
Air Canada has now reached contract extension deals and pension funding moratoriums with its entire unionized workforce, and its customer service union was the first to ratify its tentative agreement.
CUPE's negotiations occurred under the supervision of mediators that also aided Air Canada in reaching tentative deals with unions representing its dispatchers, customer service agents and mechanics.
These negotiations are occurring against the backdrop of Air Canada's efforts to shore-up its liquidity to avoid a second formal restructuring this decade. As of 1 January the carrier had an overall C$3.2 billion pension deficit, with estimated contributions for 2009 ranging from C$150-C$410 million.
Air Canada still needs the federal government to adopt an amendment to pension funding rules for the proposed moratoriums to take effect. Specifics include a freeze of contributions for a 21-month period with fixed payments made from 2011 through 2013.
"These tentative agreements will allow us to move forward to the next milestones: obtaining the necessary governmental measures and approvals for the pension funding arrangement and raising new financing," says Air Canada chief executive officer Calin Rovinescu.
Source: Air Transport Intelligence news
