Air Canada Asks Unions For Pension Deal

Air Canada said on Monday it was seeking support from its unions for "a moratorium and other conditions on funding" its pension deficit, which is more than CAD$3 billion (USD$2.5 billion).

Canada's biggest airline said the moratorium would allow it to establish financial certainty over the next several years and help it maintain its defined benefit pension plans.

The Canadian Auto Workers union, which represents about 4,500 Air Canada staff, is demanding the airline continue funding the pension plan.

The union said it would present a five-point plan to turn the carrier around at a news conference on Monday.