Air Canada and the airline's largest union have agreed to go back to the bargaining table.
The airline and the International Association of Machinists and Aerospace Workers have agreed to a 10-day negotiation period after Labour Minister Lisa Raitt appointed an arbitrator to settle the dispute.
IAMAW represents 8,600 Air Canada mechanics, baggage handlers and cargo agents. Those workers were set to go on strike last month before the federal government stepped in and passed back-to-work legislation in advance of any job action, in effect making any widespread work stoppage illegal.
That legislation mandated that the dispute would be ended by binding arbitration.
In a release Friday, the two sides say they will have no further public comments during the course of the negotiations.
The airline has another labour dispute on its hands, as Air Canada's pilots are also without a contract. The pilots have already agreed to talks with an arbitrator.