Air Canada forms tentative agreement with CAW union

Airline Industry Information, May 21, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Air Canada and the Canadian Auto Workers union (CAW) have reportedly formed a tentative agreement on cost savings.

The agreement is said to meet the target set for CAW's share of Air Canada's required CAD200m in cost savings. The airline has now satisfied the outstanding conditions in the Deutsche Bank Standby Purchase Agreement and the GE Capital Aviation Services (GECAS) Global Restructuring Agreement after forming cost-savings agreements with all of its unions.

The tentative agreement with the CAW - which represents about 5,000 customer sales and service agents and crew schedulers at the airline - is subject to ratification by union members.

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