Air Canada, IAMAW Reach Contract Agreement

Air Canada provided the following comment in response to receiving confirmation from the IAMAW that its members have ratified their tentative agreements on labor stability and pension funding relief. This successfully concludes the ratification process by all five of Air Canada’s Canadian-based unions:

Air Canada has concluded comprehensive labor agreements on a cost-neutral basis for 21 months with its entire unionized workforce in Canada, in addition to a pension-funding moratorium. The terms of the labor contract extension agreement specify that there shall be no changes to wage rates and pension benefit levels during the extension period.

The agreements remain subject to the adoption by the Federal Government of an Order-in-Council amending Air Canada’s pension funding rules and Air Canada raising a minimum of $600 million in new financing.

The pension funding agreements are also subject to the support of the company’s non-unionized employees and retirees. A consultation process with these groups is currently under way and is expected to be concluded by July 18, 2009.

The five unions representing Air Canada’s Canadian-based employees are the IAMAW, representing approximately 12,300 technical, maintenance and operational support, clerical and finance employees; ACPA representing approximately 3,200 pilots; CUPE, representing approximately 6,700 flight attendants; CAW Local 2002, representing approximately 4,100 customer service and sales agents; and CALDA, representing approximately 70 flight dispatchers.