Holdout Union OKs Plan to Save Airline

Ending a weeklong holdout that jeopardized Canadian Airlines’ survival, the Canadian Auto Workers union reached agreement with the airline and federal government on a rescue plan that includes employee pay cuts. Long after the airline’s five other unions had accepted the plan, the CAW resisted, insisting that the government should contribute more money or re-regulate the aviation industry to improve the airline’s chances for profitability. The union, which represents 3,700 Canadian Airlines reservation and ticket agents, finally accepted pay cuts, but only after bargaining them down to an average of 3.7%, compared with the 10% initially demanded by the airline.