Less than 36 hours away from a potential strike, a union spokesperson says there has been positive movement in negotiations with Air Canada.

Shannon Devine, spokesperson for the Canadian Auto Workers' union, which represents some 3,800 customer and sales staff, says there has been improvements in talks on the issues of wages, hours and health benefits.

However, Air Canada is not budging on the issue of a change to pensions for new hires, the union says.

The negotiations are still on-going at a downtown Toronto hotel.

Jamie Ross, president of the Canadian Auto Workers local that represents the workers, says they are prepared to work right up until the strike deadline.

The deadline for strike action is Tuesday at 12:01 a.m.

Air Canada says in the event of a walkout, it has a contingency plan to operate a full schedule.

"Management has been trained to provide assistance at the airports that would be affected," Duncan Dee, Air Canada's chief operating officer, said in a statement.

The airline is proposing new hires get a defined-contribution pension plan instead of the defined-benefit plan that current employees have.

Federal Labour Minister Lisa Raitt urged both sides to reach a deal as soon as possible in a statement Saturday.

Raitt said she was concerned that a work stoppage could hurt Canada's economic recovery.

With files from The Canadian Press