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Air Transat has reached an agreement with its maintenance and store personnel to implement a wage freeze following a second quarter in which the company recorded a $13.2 million loss.
The agreement follows a similar pact between the airline and its pilots and flight attendants, and calls for a deferment of planned wage increases in exchange for a variable compensation formula based on the company hitting certain financial targets. The new collective agreement, negotiated by the International Association of Machinists and Aerospace Workers (IAMAW) on behalf of the employees, will be in place until 2016.
“Our members agreed to the freeze until 2016 provided we had the ability during the life of the agreement to have the same pay out program as management, based on the net profit of the company,” said IAMAW spokesman Georges Bujold. “As a fallback, should the company not return to profitability, our members will receive a 4.25 per cent wage increase over the life of the agreement.”
The union said the agreement also included the introduction of crew rest premium, increased endorsement premium and the introduction of family day care.
“We are proud to be able to rely on employees and unions that are demonstrating an exceptional attitude of engagement that will enable us to maintain our efforts to return the company to profitability,” said Transat A.T. Inc. president and chief executive officer Jean-Marc Eustache. “All the negotiations have been marked by a spirit of listening and mutual respect and we are pleased with the agreement announced today.”
