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Air Canada and flight attendants’ union reach tentative contract deal

MONTREAL — Air Canada has reached a tentative contract deal with the union for its flight attendants, averting a possible strike that would have severely disrupted operations at Canada’s biggest airline.

MONTREAL — Air Canada has reached a tentative contract deal with the union for its flight attendants, averting a possible strike that would have severely disrupted operations at Canada’s biggest airline.

The Canadian Union of Public Employees said Tuesday it is recommending Air Canada’s 6,800 flight attendants accept the deal, details of which won’t be made public until after a vote is held.

“It’s business as usual and customers can continue to make their travel plans on Air Canada with confidence,” Susan Welscheid, Air Canada’s senior vice-president of customer service said in a statement.

In August, the Air Canada flight attendants had resoundingly rejected a tentative deal CUPE negotiated with the airline, forcing the two sides back to the drawing board. The key areas of dispute were wages, pensions, crew rest, working conditions and work rules.

CUPE said it will hold meetings of its membership in Vancouver, Calgary, Toronto and Montreal over the next week.

Union president Jeff Taylor said its “executive committee will recommend that its members accept this tentative agreement.”

A strike deadline had been set for just after midnight Wednesday, though federal Labour Minister Lisa Raitt had warned she would introduce back-to-work legislation.

Minutes after the deal was announced by the union, Labour Minister Lisa Raitt stood in the House of Commons to call on union members to ratify the agreement.

“The objective of the legislation that we put on notice yesterday has been achieved and we are so very pleased that air service for Canadians will be protected,” she said.

Yvon Godin, the Opposition NDP ’s labour critic, said he’s pleased a deal was reached without a strike.

“This shows collective bargaining can work. Canadians can be assured New Democrats will not let (Prime Minister Stephen) Harper quietly take away the rights of working Canadians without a fight from the official Opposition.”

A walkout in June by the airline’s customer service agents lasted just three days before a deal was reached under a threat by Raitt that she would legislate them back to work.

The Air Canada deal with its flight attendants was announced soon after the two sides resumed face-to-face talks and hours after they broke off negotiations in the middle of the night.

It prompted Air Canada’s (TSX:AC.B) shares to soar more than six per cent, gaining 10 cents to $1.69 in afternoon trading on the Toronto Stock Exchange.

The airline had begun to initiate parts of a plan to continue flying through a strike by contacting passengers and changing some of the flights operated by its regional partner Jazz (TSX:CHR.B).

Industry observers believed it would use trained managers and office personnel to maintain flights on its most lucrative routes.

Before a deal was reached, passengers at Toronto’s Pearson International Airport were worried about the impact of a strike on their own travel plans.

The union held rallies at Parliament Hill in Ottawa and other locations as a show of support.

Sal Occhiuzzi, 54, a flight attendant for 31 years, said workers just wanted a fair deal that will allow them to recover some of the money lost in the last decade.

“We helped the company out when things were tough and we all gave a lot and it’s time for the company to give a bit back,” he said.

Banging drums and toting signs, flight attendants rallied at the country’s largest airport, backed by several other of the airline’s unions.