| TRANSAT REACHES COST-REDUCTION AGREEMENT WITH ANOTHER UNION | | The Canadian Press |
Transat AT Inc. has reached a cost-reduction agreement with another labour union, which has agreed to put off negotiated wage increases in order to help the money-losing company.
The Montreal-based travel and vacation provider says the union representing its maintenance and store personnel has agreed in principle to defer planned wage increases included in a contract that expires in April 2016.
In return for the concession, Transat is putting in place a compensation formula that will reward its unionized employees if the company attains certain financial targets.
Transat's pilots and flight attendants have previously made similar concessions.
The latest agreement is with the International Association of Machinists and Aerospace Workers.
Transat disclosed last month that it had a $13.2 million loss in the second quarter ended April 30.
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