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TORONTO: CUPEs Air Canada Component, representing 8,300 flight attendants, has reached a six-year tentative agreement with the national carrier. The agreement was reached following marathon bargaining involving the union and the company under the supervision of Justice Warren Winkler and the Monitor in the CCAA process.

The agreement allows 1,750 job cuts, including the closure of the flight attendants base in Edmonton. The first cuts occurred April 4, 2003. The company has agreed with the union to make these reductions as humanely as possible with Voluntary Separation Packages (VSPs), including early retirement incentives, for up to 2,500 flight attendants.

Such VSPs, combined with the maintenance of our current pension plan benefits, could significantly avoid involuntary job loss for many junior flight attendants, said Air Canada Component president Pamela Sachs.

This has been an extremely difficult process for everyone involved, said Sachs, but we feel we have done the best job possible with the company facing possible liquidation.

Other significant changes include a wage cut of 3.6 per cent for the first three years of the agreement, a wage re-opener in 2006, profit sharing and a reduction in paid vacation by one week. Monthly hours of work will also increase.

Membership information meetings will be held across the country as soon as possible.


For further information, visit cupe.ca or contact:
Bill Trbovich, Air Canada Component (416) 219-6615 cell, (416) 793-0092