Air Canada, unions cut deal, saving bailout

0 Comments | AFP, May, 2004

TORONTO (AFP) — Air Canada and a holdout union struck a tentative deal on a vast cost-cutting package, which could rescue an 850-million-dollar (612-million US) bailout for the insolvent carrier.

In dramatic face-to-face talks in a Toronto hotel, Air Canada CEO Robert Milton and Canadian Auto Workers (CAW) union boss Buzz Hargrove pulled the airline back from the brink of possible liquidation.

CAW's 5,000 members working for Air Canada in sales, service and crew scheduling are expected to discuss the deal next week before voting on it.

The airline, a member of the Star Alliance and lifeline to millions of Canadians, as well as a key player on Asian and European routes, slumped into bankruptcy in April 2003.

It was hit by the global downturn in air...