Air Canada strikes pension deal with unions

Employer contributions for past service will be postponed
By Gordon Sova
||Last Updated: 07/24/2009

Another employer with pension problems has reached an accommodation with three of its unions that may solve the problem. On June 8, and with the help of mediator Hon. James Farley, Q.C., the International Assn. of Machinists, the Canadian Auto Workers and the Canadian Airlines Dispatchers Assn. came to a tentative agreement that creates a 21-month moratorium on contributions for past service. Following that, fixed payments would be made for 2011 to 2013.

The agreement does not have any impact on the company contributions to the defined-benefit plan for current employees. The collective agreements for the three unions will also be extended for 21 months with some non-monetary changes affecting work-life balance.