Tentative deal reached for striking Air Canada workers

The union representing 3,800 striking Air Canada workers says it has reached a tentative deal with the airline, not long after the Harper government tabled a bill to end the walkout.

The agreement – yet to be ratified by members of the Canadian Auto Workers – came after the union met with airline representatives Thursday morning.

At a press conference in Toronto, CAW president Ken Lewenza revealed his bargaining team had secured a wage increase – the first in 10 years – and changes affecting workers’ “quality of life.”

The main issue of employee pensions remains unresolved and will be handed over to an arbitrator, he said.

“This was the defining moment for us at CAW,” Lewenza told reporters. “But quite frankly it’s a defining moment for all workers in Canada. We regret we were not able to put it in our agreement.”

The airline has proposed switching from a defined-benefit to a defined-contribution pension plan for new hires, which would leave retirees’ income dependent on the success of the fund’s investments.

Labour Minister Lisa Raitt had introduced back-to-work legislation in the House of Commons Thursday morning, claiming the economy is too weak to weather a long strike.

The Liberals and the NDP opposed the move, as did Lewenza, who said his team was “awfully close” to reaching a settlement before Ottawa jumped in.

Raitt also plans to introduce back-to-work legislation for Canada Post workers, who were locked out Tuesday after being on a rotating strike for almost two weeks.

Travellers have faced minor delays since Air Canada customer service agents and sales staff walked off the job Tuesday.

With files from the Canadian Press

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