Canada's Air Transat cabin crew members reject second labor deal

By Shivansh Tiwary and Allison Lampert

(Reuters) -Air Transat flight attendants rejected a new tentative agreement with the Canadian leisure carrier, their union said on Thursday, as North American cabin crews are demanding steep pay gains at a time of strong travel demand.

About 82% of the votes cast opposed the new agreement, rejecting an Air Transat proposal for a second time, according to CUPE, the union representing 2,100 cabin crew members at the Montreal-based airline.

Unions in the aerospace, construction, airline and rail industries have pressed over the last two years for higher wages and more benefits amid a tight labor market.

Flight attendants at Alaska Airlines are voting through Feb. 13 on whether to give authorization for their union to strike for the first time in decades.

Transat flight attendants have voted in favor of renewing a strike mandate that had expired on Jan. 23. No strike or lockout notices have been issued yet by either party.

Montreal-based Transat said negotiations will resume in the next days and operations will continue as planned.

"We are disappointed it was rejected for a second time," said Julie Lamontagne, a Transat spokesperson. "We are returning to the bargaining table and our objective remains to find a mutually satisfactory agreement as soon as possible.”

Cabin crews at carriers in Canada and the United States are demanding to be paid for more of their hours at work - a fundamental change from how the industry currently compensates them by paying largely only when the aircraft is in motion.

Remuneration for hours worked on the ground before takeoff and after landing as well as the question of onboard staffing were the main sticking points, CUPE said.

Flight attendants at Southwest Airlines have approved a strike authorization after rejecting a tentative contract in November. An email seen in January by Reuters dismissed earlier plans to hold a new vote for that deal.

(Reporting by Shivansh Tiwary in Bengaluru and Allison Lampert in Montreal; Editing by Krishna Chandra Eluri and Mark Porter)