Air Canada Reaches Tentative Agreement with CAW on Workshare Program to Obtain 20 Percent Cost Reduc

Air Canada announced today that it had reached
a tentative agreement with the CAW - Canada on a Worksharing Program that will
mitigate job reductions for employees in that bargaining unit and meet the
airline`s objective of reducing labor costs immediately.

The agreement reduces scheduled hours of work for all Customer Sales and
Service agents represented by the CAW by 20 percent for a 26 week period,
subject to extension. The Program requires approval from Human Resources
Development Canada (HRDC) for compensation of the reduced hours through the
Employment Insurance ( EI) Workshare Program.
The agreement, effective with the first pay period of November, requires
ratification from the union membership.