Air Canada and three of its unions hammered out a tentative deal on Monday for a 21-month moratorium on pension funding, reports the Globe and Mail.

The International Association of Machinists and Aerospace Workers, the Canadian Auto Workers and the Canadian Airline Dispatchers Association are on board with the plan, which will also give employees an ownership stake in the airline.

However, the Air Canada Pilots Association and the Canadian Union of Public Employees—which represents flight attendants —were not part of the agreement.

“The pension agreement calls for a moratorium on past service contributions and fixed payments thereafter for 2011 through 2013,” Air Canada said in a statement.

Air Canada still requires fresh financing to clear the way for the labour agreement, reports the Globe.

Last week, the federal government appointed former Ontario judge James Farley as mediator in the pension contributions row between management and labour. Analysts have suggested that Air Canada is in danger of another round of bankruptcy protection if costs are not managed, including the company’s pension contributions.

Airline and union representatives will present a request for a pension funding moratorium to the Office of the Superintendent of Financial Institutions and the federal Finance Department. A federal order-in-council is required to amend Air Canada’s pension regulations to approve the proposed moratorium.

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