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Air Canada, Machinists Union To Resume Talks

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Air Canada and the union representing its 8,600 mechanics, baggage handlers and cargo agents have agreed to resume contract negotiations, the country's largest airline said on Friday.

The two sides have agreed to a 10-day negotiation period, following the appointment of an arbitrator by the minister of labor. The previous collective agreement for the workers, represented by the International Association of Machinists and Aerospace Workers union, expired on March 31, 2011.

The airline, which has struggled with tense labor relations and wildcat strikes in recent months, said last week it would resume talks with the union representing its 3,000 pilots, following the appointment of an arbitrator.

The company and both unions have agreed to a media blackout during negotiations.

The government last month enacted a law sending the airline's disputes with the machinists and pilots to binding arbitration. That prevented the machinists from carrying out a strike threat, and the airline from locking out the pilots.

(Reuters)