06/16/2011 12:55 EDT | Updated 08/16/2011 05:12 EDT

Air Canada, Union Reach Tentative Deal

THE CANADIAN PRESS — TORONTO - The Canadian Auto Workers union says a tentative collective agreement for striking Air Canada employees includes concessions on defined benefit contribution pensions for new hires.

Union president Ken Lewenza says the tentative deal is unanimous and includes a wage increase, addresses quality of life issues, and other issues raised by members.

But he said the agreement — which was announced shortly after the federal government introduced back-to-work legislation — does not include a defined benefit pension plan for future hires.

Air Canada had wanted new hires to be included in a defined-contribution plan instead of the defined-benefit plan, which saves the airline money.

Lewenza said the union gave the concession to end the strike.

Some 3,800 customer service agents and other staff walked off the job Tuesday.