In addition, the Company obtained a rate extension with ACPA on a cost-neutral basis for a 21-month period, similar to the agreements with IAMAW, CAW Local 2002 and CALDA. The contracts of the four unions stipulate that wage rates and the level of pension benefits must not change during the extension period. The contract renewal agreement and the moratorium agreement on pensions are subject to ratification of membership. TORONTO – Unifor members who work as customers and Air Canada customer representatives ratify a historic collective agreement. Toronto (June 16, 20099) – After weeks of intense negotiations, Air Canada has reached preliminary agreements with its five unions for a 21-month moratorium on pension funding. Yesterday, an agreement was reached with the Air Canada Pilots Association (ACPA), which represents approximately 3,200 pilots, and with the Canadian Union of Public Employees (CUPE), which represents approximately 6,700 flight attendants. “We are pleased to conclude these negotiations with an agreement that brings economic benefits and establishes a new industry standard for Air Canada members,” said Euila Leonard, President of Unifor Local in 2002. “The bargaining committee and our members fought and never oscillated over their sponsors when they asked for a fair agreement reflecting their commitment and contributions to the company.” Pension agreements require a moratorium on previous service contributions for a 21-month period and fixed payments of $150 million, $175 million and $225 million in 2011, 2012 and 2013. Current payments will continue to be made as normal and there will be no changes to defined benefit plans or benefit reductions. The agreements are subject to a number of conditions, including the adoption by the federal government of a regulation amending Air Canada`s pension funding and the inclusion of at least $600 million in new federal funding. Pension agreements remain conditional on Air Canada and CUPE concluding an extension of the collective agreement on terms satisfactory to each of them, and these discussions are ongoing. “Unifor members have made sacrifices for the company in more difficult times and are now earning a share of Air Canada`s record profits,” said Jerry Dias, Unifor`s national president. “This agreement does this and more.

Not only have we negotiated historic wage increases that eliminate the two-tier wage scale, but we have also created a higher level for those working in the service sector. The airline has just signed interim agreements on a moratorium on pension funding with all of its unionized employees in Canada, after reaching an interim agreement with its three unions, Canadian Auto Workers (CAW), International Association of Machinists and Civil Aviation Workers (IAMAW) and the Canadian Airline Dispatchers Association (CALDA), on June 8, 2009.

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