Air Canada said Friday it is cutting back on its maintenance requirements but denied a union leader's claim that the airline is laying off employees.

Lorne Hammerberg, president of the Winnipeg local of International Union of Machinists and Aerospace Workers, told CBC News on Friday said Air Canada told employees Thursday the reduction would result in the temporary layoffs of 255 people. Hammerberg said they were told Air Canada's reduced maintenance requirements would affect 170 permanent positions and 85 temporary jobs in Winnipeg, with layoffs beginning in the spring.

However, later, Air Canada spokeswoman Isabelle Arthur said Air Canada is not laying off any employees. She confirmed the airline plans to have reduced maintenance during the next year, but said it would affect employees of the Montreal-based Aveos Fleet Performance Inc.

Aveos was Air Canada’s maintenance division until it became an independent company since October 2007.

Arthur of Air Canada emphasized that Aveos is a private company and what happens there is a separate issue from the airline. She also said the airline is working with the union and with Aveos to mitigate the impact of the reduction, but said so far there are no numbers or locations specified.

However, Aveos spokesman Michael Kuhn told CBC News its only unionized employees are technically still Air Canada employees and their collective agreement is still with the airline.

Kuhn said Aveos is expecting a reduction in work in April and June of 2010, but no decisions have been made about job cuts.

Air Canada is Aveos's largest customer.