Air Canada (TSE:AC) says that it has reached a tentative deal with the Machinists Union that represents about 11,000 of its unionized workers.
Canada’s flagship airline says a new collective agreement covers employees who work in maintenance, cabin services, airport operations, cargo, finance, and clerical positions.
The International Association of Machinists and Aerospace Workers, the union that represents the staff members, called the deal “historic.”
However, terms of the new agreement have not been made public and will remain confidential until the union’s membership votes on whether to ratify the deal.
The vote is expected to take place in coming weeks, followed by approval from Air Canada’s Board of Directors.
The two sides began negotiations on Feb. 3 of this year. The agreement removes the risk that Air Canada will endure a work stoppage during the busy summer travel season this year.
Last year, Air Canada endured a brief but major labour disruption when its 10,000 flight attendants represented by the Canadian Union of Public Employees (CUPE) went on strike.
Air Canada’s stock has declined 23% over the last five years to trade at $21.50 per share.
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