Air Canada, machinists union to resume talks with arbitrator
Posted April 27, 2012 2:45 pm.
This article is more than 5 years old.
Air Canada is set to resume negotiations with the union that represents its 8,600 mechanics, baggage handlers and cargo agents, the country’s largest airline announced Friday.
The 10 days of scheduled talks with the International Association of Machinists and Aerospace Workers will be conducted with the help of an arbitrator. It is an approach that Air Canada’s pilots union has also adopted.
“Air Canada and the IAMAW will have no further comments during the course of these negotiations,” the Montreal-based airline said in its statement Friday.
The Machinists were prevented from going on strike last month, and Air Canada was prevented from locking out the pilots, when federal Labour Minister Lisa Raitt sent the matter to the Canada Industrial Relations Board.
The federal government later passed back-to-work legislation that sent the company and the two unions to binding arbitration, although Raitt said repeatedly it would be better for the parties to reach a negotiated agreement.
The company said late Thursday that it expected its first-quarter adjusted earnings will range between $170 million and $180 million, well above analyst forecasts that have averaged about $125 million.
Its shares took off when trading resume Friday. At mid-afternoon, its B shares were at 94 cents, up 13 per cent or 11 cents from the previous close.
