Talks between Air Canada, machinists' union likely to stretch through weekend

By Nelson Wyatt, The Canadian Press

MONTREAL - Talks between Air Canada (TSX: AC-B.TO) and the union representing its mechanics and technical staff will likely continue through the weekend as the airline tries to obtain a wage freeze and pension relief it says it needs to survive the recession.

Bill Trbovich, spokesman for the International Association of Machinists and Aerospace Workers, said the two sides took a short break late Friday afternoon and then went back to work.

"The only good thing that we can take out of this so far is the fact that both sides are still there and they haven't walked away," he said.

Air Canada says it needs immediate pension relief and is seeking $600 million in loans to survive the recession.

A couple of senior Air Canada negotiators and five representatives of the union are in the talks at this point, Trbovich added.

"It's not a full-fledged negotiation. That may come on the weekend."

The tentative agreement between Air Canada and its unions calls for a 21-month extension of the current contract, which would freeze wages, pensions and benefits at their current level.

The Canadian Auto Workers' Union representing service agents and the dispatchers' union approved a similar deal last month. The union representing the pilots and flight attendants are currently voting on the offer.

Air Canada wants the wage freeze to be approved by the 10,000 mechanics, electricians, baggage handlers and cargo agents. However, so far they have rejected the tentative contract, albeit narrowly. Their last vote rejected it by a margin of 50.8 per cent.

Trbovich said job security is an issue, particularly in Montreal where some work is sub-contracted.

"What our members are concerned about is that the work is going to go south to El Salvador and leave people high and dry after 21 months in Canada," Trbovich said in a telephone interview from Toronto, where the bargaining team is meeting.

"That's being addressed on the table."

Peter Fitzpatrick, a spokesman for Air Canada, said the meetings are "to determine how to move forward from here and achieve a solution that is satisfactory."

He wouldn't speculate on how long the talks would go on.