Air Canada reaches tentative deal with 3 unions

Air Canada said late Monday that it has reached tentative deals on pension funding moratorium and collective agreement extension with three of its unions.

The airline said in a release late Monday it reached the agreements with the International Association of Machinists and Aerospace Workers, the Canadian Auto Workers union and the Canadian Airlines Dispatchers Association.

Collectively, they represent 16,500 employees or more than 60 per cent of its unionized workforce in Canada.

The pension deal calls for a 21-month moratorium on pension funding, the company said. The agreement is subject to a number of terms and conditions, including Air Canada obtaining new financing and each union being granted an equity stake in the company.

The three unions also agreed to extend or renew the terms and conditions of their collective agreements for a period of 21 months from the expiry of their current agreements in 2009.

"These agreements with three of our unions represent an important milestone in providing stability for our company during this challenging period," Air Canada president and chief executive Calin Rovinescu said in the release.

"The pension funding solution and labour stability are key conditions precedent to obtaining critical new financing for the Company," he said. "While we continue to see very difficult credit markets during this deep recession, we are in discussions with several potential lenders who are assessing our financing needs."

Earlier this month, Finance Minister Jim Flaherty appointed former Ontario judge James Farley to mediate between Air Canada and its unions and retirees over the carrier's proposal to halt its pension contributions until early 2011.

There have been reports that Air Canada might have to seek bankruptcy protection for the second time this decade unless it can reduce costs, including delaying large pension payments due in July and August.

The Air Canada Pilots Association and the Canadian Union of Public Employees, representing flight attendants, were not part of Monday's announcement, Air Canada said.

Air Canada reaches tentative deal with 3 unions

Air Canada said late Monday that it has reached tentative deals on pension funding moratorium and collective agreement extension with three of its unions.

The airline said in a release late Monday it reached the agreements with the International Association of Machinists and Aerospace Workers, the Canadian Auto Workers union and the Canadian Airlines Dispatchers Association.

Collectively, they represent 16,500 employees or more than 60 per cent of its unionized workforce in Canada.

The pension deal calls for a 21-month moratorium on pension funding, the company said. The agreement is subject to a number of terms and conditions, including Air Canada obtaining new financing and each union being granted an equity stake in the company.

The three unions also agreed to extend or renew the terms and conditions of their collective agreements for a period of 21 months from the expiry of their current agreements in 2009.

"These agreements with three of our unions represent an important milestone in providing stability for our company during this challenging period," Air Canada president and chief executive Calin Rovinescu said in the release.

"The pension funding solution and labour stability are key conditions precedent to obtaining critical new financing for the Company," he said. "While we continue to see very difficult credit markets during this deep recession, we are in discussions with several potential lenders who are assessing our financing needs."

Earlier this month, Finance Minister Jim Flaherty appointed former Ontario judge James Farley to mediate between Air Canada and its unions and retirees over the carrier's proposal to halt its pension contributions until early 2011.

There have been reports that Air Canada might have to seek bankruptcy protection for the second time this decade unless it can reduce costs, including delaying large pension payments due in July and August.

The Air Canada Pilots Association and the Canadian Union of Public Employees, representing flight attendants, were not part of Monday's announcement, Air Canada said.

Air Canada reaches tentative deal with 3 unions

Air Canada said late Monday that it has reached tentative deals on pension funding moratorium and collective agreement extension with three of its unions.

The airline said in a release late Monday it reached the agreements with the International Association of Machinists and Aerospace Workers, the Canadian Auto Workers union and the Canadian Airlines Dispatchers Association.

Collectively, they represent 16,500 employees or more than 60 per cent of its unionized workforce in Canada.

The pension deal calls for a 21-month moratorium on pension funding, the company said. The agreement is subject to a number of terms and conditions, including Air Canada obtaining new financing and each union being granted an equity stake in the company.

The three unions also agreed to extend or renew the terms and conditions of their collective agreements for a period of 21 months from the expiry of their current agreements in 2009.

"These agreements with three of our unions represent an important milestone in providing stability for our company during this challenging period," Air Canada president and chief executive Calin Rovinescu said in the release.

"The pension funding solution and labour stability are key conditions precedent to obtaining critical new financing for the Company," he said. "While we continue to see very difficult credit markets during this deep recession, we are in discussions with several potential lenders who are assessing our financing needs."

Earlier this month, Finance Minister Jim Flaherty appointed former Ontario judge James Farley to mediate between Air Canada and its unions and retirees over the carrier's proposal to halt its pension contributions until early 2011.

There have been reports that Air Canada might have to seek bankruptcy protection for the second time this decade unless it can reduce costs, including delaying large pension payments due in July and August.

The Air Canada Pilots Association and the Canadian Union of Public Employees, representing flight attendants, were not part of Monday's announcement, Air Canada said.

Air Canada reaches tentative deal with 3 unions

Air Canada said late Monday that it has reached tentative deals on pension funding moratorium and collective agreement extension with three of its unions.

The airline said in a release late Monday it reached the agreements with the International Association of Machinists and Aerospace Workers, the Canadian Auto Workers union and the Canadian Airlines Dispatchers Association.

Collectively, they represent 16,500 employees or more than 60 per cent of its unionized workforce in Canada.

The pension deal calls for a 21-month moratorium on pension funding, the company said. The agreement is subject to a number of terms and conditions, including Air Canada obtaining new financing and each union being granted an equity stake in the company.

The three unions also agreed to extend or renew the terms and conditions of their collective agreements for a period of 21 months from the expiry of their current agreements in 2009.

"These agreements with three of our unions represent an important milestone in providing stability for our company during this challenging period," Air Canada president and chief executive Calin Rovinescu said in the release.

"The pension funding solution and labour stability are key conditions precedent to obtaining critical new financing for the Company," he said. "While we continue to see very difficult credit markets during this deep recession, we are in discussions with several potential lenders who are assessing our financing needs."

Earlier this month, Finance Minister Jim Flaherty appointed former Ontario judge James Farley to mediate between Air Canada and its unions and retirees over the carrier's proposal to halt its pension contributions until early 2011.

There have been reports that Air Canada might have to seek bankruptcy protection for the second time this decade unless it can reduce costs, including delaying large pension payments due in July and August.

The Air Canada Pilots Association and the Canadian Union of Public Employees, representing flight attendants, were not part of Monday's announcement, Air Canada said.

Housing starts rebound to top forecast in May

Canada's housing construction sector had a better-than-expected May as the seasonally adjusted, annualized rate of starts rose to 128,400 for the month.

That was ahead of the 126,000 annualized rate that economists had forecast.

In April, the seasonally adjusted annualized rate was 117,600.

"This morning’s housing starts data for May from CMHC provided us with the first sign that a bottom might be forming in Canadian homebuilding activity," said TD Bank economist Pascal Gauthier.

"Nation-wide homebuilding activity recorded its first broadly based increase since October 2008, both in terms of unit types (singles and multiples) and regions of the country," he said.

The federal government agency said urban single-home starts increased by 11.1 per cent to 46,900 units last month, while urban multiple-units starts, such as condominiums, rose by a similar percentage to 60,900.

May's seasonally adjusted annual rate of urban starts increased 22.0 per cent in Ontario, 16.8 per cent in the Prairies, 7.3 per cent in Atlantic Canada, and 3.3 per cent in Quebec. Urban starts declined 5.0 per cent in British Columbia.

Showing how much housing has retreated since last year, the overall seasonally adjusted, annualized rate of construction starts stood at 221,300 units in May 2008.

CMHC said housing starts are expected to improve throughout 2009 and over the next several years "to gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year."

Gauthier said starts are expected to remain around 120,000 on average through the remainder of this year.

"The good news part [in that forecast] is that homebuilding activity would cease to be a drag on economic growth and employment heading into next year," he said.

"The bad news part, assuming our forecast unfolds, is that we do not expect the level of starts to head back above 150,000 units before 2011."

Housing starts rebound to top forecast in May

Canada's housing construction sector had a better-than-expected May as the seasonally adjusted, annualized rate of starts rose to 128,400 for the month.

That was ahead of the 126,000 annualized rate that economists had forecast.

In April, the seasonally adjusted annualized rate was 117,600.

"This morning’s housing starts data for May from CMHC provided us with the first sign that a bottom might be forming in Canadian homebuilding activity," said TD Bank economist Pascal Gauthier.

"Nation-wide homebuilding activity recorded its first broadly based increase since October 2008, both in terms of unit types (singles and multiples) and regions of the country," he said.

The federal government agency said urban single-home starts increased by 11.1 per cent to 46,900 units last month, while urban multiple-units starts, such as condominiums, rose by a similar percentage to 60,900.

May's seasonally adjusted annual rate of urban starts increased 22.0 per cent in Ontario, 16.8 per cent in the Prairies, 7.3 per cent in Atlantic Canada, and 3.3 per cent in Quebec. Urban starts declined 5.0 per cent in British Columbia.

Showing how much housing has retreated since last year, the overall seasonally adjusted, annualized rate of construction starts stood at 221,300 units in May 2008.

CMHC said housing starts are expected to improve throughout 2009 and over the next several years "to gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year."

Gauthier said starts are expected to remain around 120,000 on average through the remainder of this year.

"The good news part [in that forecast] is that homebuilding activity would cease to be a drag on economic growth and employment heading into next year," he said.

"The bad news part, assuming our forecast unfolds, is that we do not expect the level of starts to head back above 150,000 units before 2011."

Housing starts rebound to top forecast in May

Canada's housing construction sector had a better-than-expected May as the seasonally adjusted, annualized rate of starts rose to 128,400 for the month.

That was ahead of the 126,000 annualized rate that economists had forecast.

In April, the seasonally adjusted annualized rate was 117,600.

"This morning’s housing starts data for May from CMHC provided us with the first sign that a bottom might be forming in Canadian homebuilding activity," said TD Bank economist Pascal Gauthier.

"Nation-wide homebuilding activity recorded its first broadly based increase since October 2008, both in terms of unit types (singles and multiples) and regions of the country," he said.

The federal government agency said urban single-home starts increased by 11.1 per cent to 46,900 units last month, while urban multiple-units starts, such as condominiums, rose by a similar percentage to 60,900.

May's seasonally adjusted annual rate of urban starts increased 22.0 per cent in Ontario, 16.8 per cent in the Prairies, 7.3 per cent in Atlantic Canada, and 3.3 per cent in Quebec. Urban starts declined 5.0 per cent in British Columbia.

Showing how much housing has retreated since last year, the overall seasonally adjusted, annualized rate of construction starts stood at 221,300 units in May 2008.

CMHC said housing starts are expected to improve throughout 2009 and over the next several years "to gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year."

Gauthier said starts are expected to remain around 120,000 on average through the remainder of this year.

"The good news part [in that forecast] is that homebuilding activity would cease to be a drag on economic growth and employment heading into next year," he said.

"The bad news part, assuming our forecast unfolds, is that we do not expect the level of starts to head back above 150,000 units before 2011."