A deal?

[J.O.]

Global News just reported that AC and CAW have a tentative deal, details are sketchy at this point.

So, who blinked?

[Geminoid]

CBC just made the same announcement. Said details would be available on the 10 PM news.

[Guest Fax]

ROB TV just quoted Buzz as saying they settled somewhere in the "middle".

[Guest pitstacker]

From CBC:

Air Canada and CAW reach tentative deal

Last Updated Thu, 20 May 2004 19:03:45

TORONTO - Air Canada and the Canadian Auto Workers Union reached a tentative cost-cutting deal Thursday.

Buzz Hargrove

"I'm just absolutely elated to say … we have got this done," Buzz Hargrove, president of the CAW, said after emerging from a meeting.

The two sides had been locked in final talks all day Thursday trying to salvage a rescue deal for Canada's flagship carrier, after a judge ordered discussions to continue.

Justice Warren Winkler of the Ontario Superior Court made the call after talks between the country's biggest airline and the union collapsed Wednesday night after 16 days.

FROM MAY 19, 2004: Ottawa won't rescue Air Canada, Valeri says

The CAW had refused to agree to multi-million dollar concessions demanded by the airline's would-be rescuer, Deutsche Bank. The concessions are a condition of an $850 million financing to keep the airline alive.

Written by CBC News Online staff

[Guest parkerlava]

the middle wont be good enough for DB

[Guest ikfu]

I doubt anyone is going to have details. It's a game of all the ratifications being contingent upon the others - I'll show you mine; if you show me yours. They will all be unveiled to the respective groups individually.

With the ZIP announcements today, you can figure that ZIP is no longer, and that the mainline domestic is basically ZIP working conditions and rates more or less, by my speculation though.

There were just too many hurdles to move the ZIP operation to the 319s, including interchangability of parts, swapping aircraft, training (AC pilots are on an 8 month AQP rotation, so the check pilots and training doesn't work for ZIP), etc, etc, on through the ranks of employee groups.

Maybe Rob Giguere butted heads for nothing, or maybe his head butting created the impetus that did get the domestic zipped??

[Guest YDKJ]

Air Canada and hold-out union reach a deal

CTV.ca News Staff

Air Canada and the Canadian Auto Workers have reportedly reached a deal on cost-cutting measures, a move which could save the airline's restructuring agreement.

No further details are available yet.

While talks were going on between Air Canada's CEO and the CAW, one of the airline's biggest lenders was threatening to pull its $1.5 billion financing agreement.

Citing the Canadian Auto Workers' transportation industry employee director, The Canadian Press reports that GE Capital Aviation Services has filed a motion to withdraw its aircraft lease financing if a deal can't be reached by Friday.

That's when the airline is due to appear in bankruptcy court.

CP says that the letter sent to Air Canada officials indicates GE Capital will block attempts to extend the airline's creditor protection, if the terms can't be met.

In order to stay aloft after the court protection expires, the carrier needs to save $200 million in labour costs. With that done, Germany's Deutsche Bank has promised to kick in an $850-million investment.

Previously, the GE unit has said it could drop its funding if Deutsche Bank chooses to.

Word of the possible funding withdrawal increases the pressure on negotiators trying to get the struggling airline's restructuring plan back on track.

Under a judge's supervision, CAW leader Buzz Hargrove met with Air Canada CEO Robert Milton in Toronto Thursday to try to break a deadlock in negotiations.

Hargrove wasn't hopeful heading into the talks, suggesting that he only agreed to the meeting because Ontario Superior Court Justice Warren Winkler had instructed the two leaders to sit down with him.

"I'm not optimistic. I haven't been, through this whole thing," Hargrove said before entering the meeting.

The CAW is the lone holdout among Air Canada's six major labour groups. For days now, the union has met with the airline's representatives over a wage-cutting deal, but to no avail.

Air Canada reportedly wants its 6,400 CAW employees -- ticket-counter and call-centre agents, crew schedulers and maintenance staff -- to accept $27 million in reductions. That's in addition to $1 million of wage cuts agreed to in April 2003.

But Hargrove has said his union's accountants peg the shortfall at approximately $18 million in new concessions.

"So that's where we're at," Hargrove said Wednesday, noting that he would be willing to have an independent economist come in and try to reconcile the difference.

Analysts have warned that if Deutsche Bank walks away, it will be difficult to find replacement investors for Air Canada, which remains under bankruptcy protection.

In his news conference Wednesday afternoon, Hargrove suggested other investors are lining up for a crack at the struggling airline. Former United Airlines chief executive Gerald Greenwald may be interested, he suggested.

Milton shot back at the union, saying it was floating "myths" that potential investors are waiting in the wings.

"There are many myths being floated about what is on the table with the CAW and who might be willing to step in and invest in Air Canada," Milton said in a message posted on Air Canada's website.

Air Canada persuaded Deutsche Bank to step in after Hong Kong billionaire Victor Li walked away in April from an agreement to buy a third of the airline for $650 million.

Transport Minister Tony Valeri urged Air Canada and the union to try again, suggesting they can forget about a government bailout.

"As I have said in the past, solutions to this impasse must come from the private sector. That remains the position of the government of Canada."