Air Canada, pilots' union resume negotiations

Parties agree to 10-day negotiation period with arbitrator

(Reuters) -- Air Canada and the union representing its pilots have agreed to a 10-day negotiation period to re-start talks that ended in a strike last week.

The negotiation period will begin following the appointment of an arbitrator by the minister of labour, Air Canada and the Air Canada Pilots Association (ACPA), the union said in a statement.

The airline has been in dispute with a number of unions, including the one representing its pilots. It wants to set up a discount airline to help its bottom line at a difficult time for the aviation sector, while the unions oppose the plan, fearing job security.

The agreement comes a week after ACPA pilots went on a strike that was deemed illegal by Canada's labour board.

Both parties have agreed to a media blackout during the negotiations.

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