Air Canada Pilot Talks Resume; Labor Negotiations Back On After 'Sickout'

A week after Air Canada was hit with "sickout" by hundreds of pilots, causing moderate flight cancellations and disruptions, the union and the airline have agreed to return to the negotiating table.

Canada's largest airline has been plagued with strike threats and uncertainty as its unions flexed their strength, holding at least two illegal job actions in the past month.

Under the protocol agreed to Thursday, the two sides will head back to the bargaining table in hopes of hammering out a deal with the help of a federal arbitrator, who is to be named shortly. If no deal can be reached within a 10-day period, the parties will then go to final offer arbitration, as set out in back-to-work legislation brought in by the Harper government last month.

Talks have persisted for more than 18 months, and any deal will need to be ratified by the membership. A tentative agreement reached last year was rejected, prompting internal strife within the union.

Top issues include wages, pensions as well as a company proposal to start a discount carrier to fly to vacation destinations, which could result in different pay scales and work rules.

Labour experts have argued the best way for Air Canada to repair its relationship with its pilots is to restart talks in hopes of reaching a settlement. Otherwise, the constant threat of possible job action like last Friday's sudden surge in bookoffs leads to much uncertainty.

Air Canada's shares have fallen as it has faced labour woes as well as rising fuel prices, a faltering economy and a high Canadian dollar.

Copyright 2012 Toronto Star Newspapers Limited