Air Transport

Air Canada today took a crucial step towards improving its financial situation after the union representing its mechanics endorsed a 21-month contract extension and pension funding freeze.

It was the second vote held by the International Association of Machinists and Aerospace Workers (IAMAW) after the group narrowly rejected the deal during a vote earlier this month. Their concerns rested largely on job protections once the contract extension expires.

The union, which also represents 12,300 technical, maintenance and operational support, clerical and finance employees, approved the agreement by a 60% margin during a vote held on 14 July.

With the approval of the fifth and final union of the concession package Air Canada can now seek federal government approval of the pension funding moratorium and a crucial $600 million financing package. The carrier is aiming to avoid its second formal restructuring this decade.