Air Canada reaches labor deal with mechanics union
By APWednesday, July 15, 2009
Air Canada reaches deal with mechanics union
TORONTO — The largest union at Air Canada has approved a 21-month labor contract, considered a critical factor in keeping the airline out of bankruptcy court.
The International Association of Machinists and Aerospace Workers said Wednesday members voted 60 percent in favor of the deal this week. The union initially rejected the deal by 50.8 percent.
IAMAW is the last of Air Canada’s unions to ratify a new labor contract.
Air Canada has said the labor agreements are necessary to reduce its costs as it deals with the effects of the recession.
The agreements are contingent on government approvals for a pension deferral and on the airline getting 600 million Canadian dollars ($524 million) of new financing.
