WestJet has reached a tentative agreement with the union that represents its maintenance engineers, averting a potential strike at the privately held airline.
The two sides will now wait for the results of a ratification vote by union members. Details of the proposed new contract have not been made public.
On May 4, WestJet, which is owned by Onex Corp. (ONEX), issued a 72-hour lockout notice to the Aircraft Mechanics Fraternal Association (AMFA) union, warning of a work stoppage as early as April 7 unless a new labour agreement was achieved.
Pilots at WestJet received a 24% pay raise over four years, plus other benefit enhancements, as part of a new labour pact reached in 2023.
Based in Calgary, WestJet primarily operates in the western region of Canada. It has about 12,000 employees.
The stock of Onex Corp. has risen 65% over the last 12 months to trade at $100.44 per share.