Air Canada sales and service agents have ratified a tentative labour pact, leaving the carrier to deal with three other major unions.
Of the ballots cast by members of the Canadian Auto Workers union, 87.7 per cent favoured the four-year agreement reached June 16. The country's largest airline secured the tentative labour deal with the union to end a three-day strike, with a contentious pension dispute headed toward an arbitrator to be approved by both sides.
Montreal-based Air Canada wants to put new hires on defined-contribution pension plans, which don't provide a guaranteed level of payout on retirement.
Ottawa was on the verge of tabling back-to-work legislation, but the labour pact halted the walkout by 3,800 airport check-in agents and call centre staff. The previous contract expired Feb. 28.
Under the new collective agreement, CAW members will receive wage increases of 2 per cent in each of the first three years, and 3 per cent in the final year of the four-year pact.
"The great spirit of our membership and the fight-back they launched across the country helped ensure this strong agreement was negotiated and overwhelmingly ratified," CAW president Ken Lewenza said in a statement Monday.
CAW leaders say payouts for new retirees in existing defined-benefit pensions will be unchanged until Jan. 1, 2013.
"After Jan. 1, 2013, the early retirement options under the Air Canada pension plan will not be as generous," the CAW said in a bulletin to its members during last week's vote. "However, the plan will continue to provide a very good benefit for those members who continue to work with Air Canada to age 55."
The CAW noted that its members' retirement age is at an average of 57.9 years. "Over the last four years, CAW members have retired about five years after the date that they are eligible to retire," said CAW airline local 2002.
Air Canada negotiators will now turn their attention to collective agreements that expired on March 31 for the Air Canada Pilots Association, the Canadian Union of Public Employees (flight attendants) and International Association of Machinists and Aerospace Workers (mechanics and baggage handlers).
In May, the CAW, CUPE and IAMAW said they have joined forces to fight what they view as the airline's plans to weaken pensions for new hires.
Labour leaders say they are developing their own ideas to reduce the cost of pensions, but creating defined-contribution plans for new hires would be too drastic.
In mid-2009, unions agreed to management's request to suspend company contributions to pension plans until early 2011, but Air Canada argues that its pension plans have yet to return to financial health.
CUPE officials have said that they are open to discussions on Air Canada's plans to launch a low-cost carrier. Management wants to pay less to flight attendants at the discount leisure unit, and revise some work rules.
Last month, pilots rejected a tentative labour pact that called for the creation of a new, lower-wage scale at the proposed low-cost carrier.
Brent Jang