APPENDIX XXI

Further to previous conversations you and I have had, this letter is to confirm our agreement on to deal with Long-Term Special Assignments.

AIR CANADA
   
March 29, 2004

Ms. Pamela Sachs                                         BY FAX: (416) 674-6824
Air Canada Component President
CUPE – Airline Division
180 Attwell Drive, Suite 600
Etobicoke. Ontario
M9W6A9
RE:    Long-Term Special Assignments

Dear Pam: –

Further to previous conversations you and I have had, this letter is to confirm our agreement on to deal with Long-Term Special Assignments.

The Company is prepared to apply the following interpretations to the application of LOU 5:

1.   As stipulated in LOU 5 of the Collective Agreement. Long Term
     Special Assignments are for a period of one (1) complete block
      month or more During a Long—Term Special Assignment an
      employee may be given multiple assignments of one complete
      block month or more within the special assignment period.-

–    For the sake of clarity, when a Long—Term Special Assignment is interrupted and the employee is returned to regular flight attendant duties, the employee may be recalled into another position as a Long-Term Special Assignment, but the total term cannot exceed the one (1) year limit (twelve (12) consecutive months).

Long-term special assignments for training can last for three (3) years (thirty-six (36) consecutive months). CUPE members who are on a Training special assignment for a three (3) year term will work only in training assignments during the three (3) year team

2.    Following a Long Term Special Assignment, the employee shall not be eligible for further Special Assignments, long term or short term, for a period of one (1) year (twelve (12) consecutive months).

3.  Should an employee exercise their rights under Article – 1604 and 
     then return to a position in the Collective Agreement in accordance
     with Article 16.04, that employee shall not be eligible for a Special
     Assignment, long term or short term, for a period of one (1) year
     (twelve (12) consecutive           
    CENTRE AIR CANADA
    CP 14000, Succ Aéroport
    Dorval QC  H4Y 1H4
                                                                                              aircanada.ca
                                                                                                                    
                                                                                        A STAR ALLIANCE MEMBER
                                                                                                                  MEMBRE DU RÉSEAU STAR ALLIANCE
months). Moreover, Air Canada will notify CUPE when an employee exercises their rights under Article 16.04.
    
                     4.    Air Canada will reduce the three (3) year limit (thirty-six (36) consecutive months) for Recruiting Special Assignments to two (2) years (twenty-tour (24) consecutive months) at which point the employee shall not be eligible for further Special Assignments, long term or short term, for a period of one (1) year (twelve (12) consecutive months).

CUPE members who are on a Recruiting special assignment for a two (2) year term (24 consecutive months) will work only in recruiting assignments during the two (2) year period.

 5.   Air Canada will share with the Union the formula used to calculate 
       Long Term Special Assignment compensation so that the union may
       make a determination on whether to continue the grievance to
       special assignment pay. This formula will be provided to the Union
       no later than April 15, 2004.

I trust that this covers the concerns that you have raised. Please confirm your agreement to me and feel free to call me to discuss further.

Yours truly,

Andrew Torriani
Director, Labour Relations  Flight Ops & IFS

Cc:     Brad Moore –  VP Customer Service
    Tony Colliss –  Director, IFS Bases
Donna Burgess – A/Director –  Safety & Customer Service Operations
          Marcel Delhommeau –  Labour Relations Manager, IFS