The union representing Air Canada’s baggage workers, mechanics and purchasing agents said on Friday it has reached a tentative contract deal with the airline.
The International Association of Machinists and Aerospace Workers said the proposed four-year agreement provides wage increases, improved benefits and secures a defined benefit pension fund for about 8,500 workers. It did not specify the size of the wage increases.
Contract talks began in late 2011 and were completed with a government conciliator, who joined negotiations on January 9. The previous contract expired March 31, 2011.
Dates have not yet been set for ratification meetings at which members will vote on the deal.
Bargaining has just begun for the union’s 221 finance and 240 clerical workers, a union spokesman said.
The tentative deal comes a day after Air Canada pilots said they would hold a strike vote after talks with a government-appointed conciliator and management failed to produce results. After a cooling-off period that ends February 14, the pilots can walk off the job after giving the airline 72 hours’ notice.
The Air Canada Pilots Association reached a tentative agreement with the airline in March, but the union’s membership rejected the deal, worried about two-tier pensions and the impact of a discount airline proposed by the airline.