A section of one of Air Canada's unions has narrowly rejected the airline's restructuring plan, the International Association of Machinists and Aerospace Workers said Wednesday.
The deal was agreed to by bargaining committees for Air Canada's five unions, the airline said June 16. The Montreal-based airline calls the arrangement by the five unions "the tentative pension funding moratorium and labour stability agreements."
But it still required member ratification. The IAMAW's section of mechanics, millwrights, baggage and cargo agents, planners, electricians and aircraft groomers and cleaners rejected the deal by 50.8 per cent.
The union's clerical and finance sections endorsed it, as have two of the other four airline unions.
The machinists union could hold a second vote to see if the mechanics and others will approve it, or meet the company to see if the deal could be changed to mollify the members.
IAMAW leaders are meeting Thursday and are hoping to meet with Air Canada on Friday, spokesman Bill Trbovich said.
The impact of a final rejection could force the company to seek bankruptcy protection, observers have said.
Air Canada is struggling with a $2.85-billion pension shortfall. Resolving that issue is a key part of the talks with the unions, which in turn are part of its plan to strengthen its finances.
Air Canada has said an agreement on concessions depends on three things:
Air Canada Class B shares fell one cent to $1.41 in TSX trading.
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