Canadian government ends Air Canada strike, imposes binding arbitration
The move came less than 12 hours after Air Canada's 10,000 flight attendants walked off the job, at 1 a.m. Saturday, after months of stalled negotiations over a new contract.
Canada's labor policy minister, Patty Hajdu, said she met with both sides Friday night and determined there was a low likelihood of a near-term deal.
'They are so far apart on a number of issues that they are going to need some help,' she told the Wall Street Journal.
3 The Canadian government imposed binding arbitration Saturday to bring a strike by the country's largest airline carrier to a screeching halt.
AFP via Getty Images
'This is not a decision that I've taken lightly, but the potential for immediate negative impact on Canadians and our economy is simply too great,' she said.
The most contentious issue in the contract talks has been the Canadian Union of Public Employees' demand for compensation for time spent on the ground between flights and when helping passengers board. Flight crews are currently only compensated when their airplane is moving.
3 Striking Air Canada workers walk the picket line at Pearson International Airport in Toronto.
AFP via Getty Images
Montreal-based Air Canada formally requested this week the government impose binding arbitration, arguing talks were at an impasse.
3 Air Canada said it was premature to discuss when flights would resume as the arbitration order was just unveiled.
AP
The union in a statement said the government gave Air Canada what it wanted.
The union, known as CUPE, made 'reasonable proposals for a fair cost-of-living wage increase,' it said. 'Air Canada responded by sandbagging the talks.'
Air Canada said it was premature to discuss when flights would resume as the arbitration order was just unveiled.
Air Canada transports about 130,000 passengers daily, operates nearly 200 flights daily to the U.S., and flies to nearly 60 countries.
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Travel Weekly
an hour ago
- Travel Weekly
Canadian government forces Air Canada flight attendants back to work
TORONTO (AP) -- Canada's government forced Air Canada and its striking flight attendants back to work and into arbitration Saturday after a work stoppage stranded more than 100,000 travelers around the world during the peak summer travel season. Federal Jobs Minister Patty Hajdu said now is not the time to take risks with the economy, noting the unprecedented tariffs the U.S. has imposed on Canada. The intervention means the 10,000 flight attendants will return to work soon. The government's action came less than 12 hours after workers walked off the job. "The talks broke down. It is clear that the parties are not any closer to resolving some of the key issues that remain and they will need help with the arbitrator," Hajdu said. Hajdu said the full resumption of services could take days, noting it is up to the Canada Industrial Relations Board. Meanwhile, Wesley Lesosky, president of the Air Canada component of the Canadian Union of Public Employees union, accused the government of violating the flight attendants' constitutional right to strike -- and decried Hajdu for only waiting hours to intervene. "The Liberal government is rewarding Air Canada's refusal to negotiate fairly by giving them exactly what they wanted," Lesosky said. Air Canada did not immediately have additional comments when reached Saturday afternoon. But Air Canada COO Mark Nasr previously said it could take up to a week to fully restart operations. It's likely that travelers will continue to see disruptions in the coming days. The shutdown of Canada's largest airline early Saturday is impacting about 130,000 people a day, and some 25,000 Canadians may be stranded. Air Canada operates around 700 flights per day. According to numbers from aviation analytics provider Cirium, Air Canada had canceled a total of 671 flights by Saturday afternoon, following 199 on Friday. And another 96 flights scheduled for Sunday were already suspended. Hajdu ordered the Canada Industrial Relations Board to extend the term of the existing collective agreement until a new one is determined by the arbitrator. "Canadians rely on air travel every day, and its importance cannot be understated," she said. Union spokesman Hugh Pouliot didn't immediately know what day workers would return to work. "We're on the picket lines until further notice," he said. The bitter contract fight escalated Friday as the union turned down Air Canada's prior request to enter into government-directed arbitration, which allows a third-party mediator to decide the terms of a new contract. 'Such little progress has been made' Flight attendants walked off the job around 1 a.m. Eastern time on Saturday. Around the same time, Air Canada said it would begin locking flight attendants out of airports. Ian Lee, an associate professor at Carleton University's Sprott School of Business, earlier noted the government repeatedly intervenes in transportation strikes. "They will intervene to bring the strike to an end. Why? Because it has happened 45 times from 1950 until now," Lee said. "It is all because of the incredible dependency of Canadians." Last year, the government forced the country's two major railroads into arbitration with their labor union during a work stoppage. The union for the rail workers is suing, arguing the government is removing a union's leverage in negotiations. The Business Council of Canada had urged the government to impose binding arbitration in this case, too. And the Canadian Chamber of Commerce welcomed the intervention. "With valuable cargo grounded and passengers stranded, the government made the right decision to refer the two sides to binding arbitration," said Matthew Holmes, the executive vice president for the Chamber of Commerce. He added that "close to a million Canadians and international visitors could be impacted" if it takes Air Canada a week to be fully operational again. Hajdu maintained that her Liberal government is not anti-union, saying it is clear the two sides are at an impasse. Travelers in limbo Passengers whose flights are impacted will be eligible to request a full refund on the airline's website or mobile app, according to Air Canada. The airline said it would also offer alternative travel options through other Canadian and foreign airlines when possible. Still, it warned that it could not guarantee immediate rebooking because flights on other airlines are already full "due to the summer travel peak." Many travelers expressed frustration over Air Canada's response to the strike. Jean‐Nicolas Reyt, 42, said he had heard little from Air Canada just hours before his upcoming flight from France scheduled for Sunday. "What's stressful is to not hear anything from Air Canada," said Reyt, who is trying to return to Montreal, where he is an associate professor of organizational behavior at McGill University. He said he only received one email from the airline on Thursday warning of potential strike disruptions, but had no further information as of Saturday evening in Cannes, where he was visiting family. Reyt assumes his upcoming flight could be canceled -- much like the scores of other lengthy disruptions this weekend. "I'm just very surprised that Air Canada let it go this far," he said. "It's really a bit disheartening that they fly you somewhere abroad and then they just don't fly you back." Jennifer MacDonald, of Halifax, Nova Scotia, expressed similar frustration. She has been trying to help her brother and cousin get home to Edmonton, Alberta since the second leg of their Air Canada trip was canceled during what was supposed to be a one-hour layover in Montreal on Friday night. The two had to pay $300 out of their own pocket for a hotel, MacDonald said. All Saturday morning, they tried to look for rebooking options, but everything was sold out. Eventually, they opted to book a new flight for Aug. 22 out of Halifax, with another family member volunteering to make an eight-hour drive to pick them up in Montreal and bring them back east on Saturday. "It will be a multiday ordeal and a multi-thousand dollar trip," MacDonald said. But as stressful as the disruptions have been, she added that her family stands in solidarity with the flight attendants. "We hope that Air Canada lifts the lockout and negotiates fairly." Following the news of the Canadian government forcing arbitration on Saturday, Reyt also expressed concern for Air Canada's flight attendants. "I think the flight attendants are making some reasonable arguments," he said, adding that he hopes the intervention isn't "a way just to silence them." Sides are far apart on pay Air Canada and the Canadian Union of Public Employees have been in contract talks for about eight months, but they have yet to reach a tentative deal. Both sides say they remain far apart on the issue of pay and the unpaid work flight attendants do when planes aren't in the air. "We are heartbroken for our passengers. Nobody wants to see Canadians stranded or anxious about their travel plans but we cannot work for free," Natasha Stea, an Air Canada flight attendant and local union president, said before the government intervention was announced. The attendants are about 70% women. Stea said Air Canada pilots, who are male dominated, received a significant raise last year and questioned whether they are getting fair treatment. The airline's latest offer included a 38% increase in total compensation, including benefits and pensions over four years, that it said "would have made our flight attendants the best compensated in Canada." But the union pushed back, saying the proposed 8% raise in the first year didn't go far enough because of inflation.
Yahoo
2 hours ago
- Yahoo
Ottawa orders binding arbitration in Air Canada-union dispute to end flight attendants' strike
The federal government is intervening in the labour dispute between Air Canada and the union representing its flight attendants, just hours after they went on strike. Jobs Minister Patty Hajdu said early Saturday afternoon that she has invoked Section 107 of the Canada Labour Code to order binding arbitration between the airline and its union and has ordered operations to resume — although it's not immediately clear when the 10,000 flight attendants will return to work. "As minister of labour, I have exercised my authorities under [the labour code] to direct the Canada Industrial Relations Board to order the parties to resume and continue their operations and duties," she told a news conference. "These parties have had months at the negotiation table. They've had support through the federal mediation service and they have been unable to cross the finish line," Hajdu said. "Arbitration is the most stable way to conclude this process for Canadians, while allowing parties to reach a deal." Ottawa's involvement came after the union representing Air Canada's flight attendants said no talks were scheduled with the airline as of Saturday morning. In a statement posted to social media platform X, the Air Canada component of the Canadian Union of Public Employees (CUPE) said Hajdu is "crushing flight attendants' Charter rights" by forcing arbitration. Wesley Lesosky, president of CUPE's Air Canada component, said this action leaves the union at the bargaining table with an "obstinate employer" and that Hajdu has given Air Canada exactly what it wants — "hours and hours of unpaid labour from underpaid flight attendants." CBC News has reached out to Air Canada for comment and will update this story with any response. Binding arbitration Air Canada previously asked Hajdu to intervene by ordering the parties to enter a binding arbitration process through Section 107. On Friday, Hajdu urged Air Canada and the union to get back to the negotiating table, suggesting she was not ready to intervene. The minister said CUPE had indicated many of its demands have been met, suggesting there was a path forward to a deal. The union and airline met late Friday night before the flight attendants walked off the job at 12:58 a.m. ET, Lesosky told a morning news conference. He said their last meeting was Friday night, but Air Canada offered "nothing of substance" to bring back to members. Asked when Canadians could expect to be back on flights, Lesosky said it's up to Air Canada but that public pressure on the airline will make a "huge difference" in reaching a settlement. Passengers left stranded All Air Canada and Air Canada Rouge flights are suspended for now. About 130,000 customers will be affected each day the strike continues, said the airline. Flights by Air Canada Express, which are operated by third-party airlines Jazz and PAL, are not affected. "Air Canada deeply regrets the effect the strike is having on customers," it said in a brief statement early Saturday morning. CUPE has set up picket lines at airports across Canada, including in Montreal, Toronto, Calgary and Vancouver. Striking flight attendants also plan to picket at airports in Halifax, Ottawa and Winnipeg. In the meantime, passengers around the world are feeling the effects of the flight attendants' strike. Keelin Pringnitz and her family are from Ottawa and were returning from a European vacation but were left stranded after flights were cancelled. "It was an end of my maternity leave kind of trip. We went to the Faroe Islands and Norway, travelling through Air Canada to London," Pringnitz said from London's Heathrow Airport. She noted there was an option for travellers to go the U.S., but she and others were told there wouldn't be any further assistance once they landed. "It didn't go over well with the line. Nobody really seemed interested, everybody seemed a little bit amused almost at the suggestion, or exasperated, because it is a bit ridiculous to offer to take stranded passengers to a different country to strand them there." For customers due to travel soon whose flights are not yet cancelled, Air Canada said it will allow them to rebook their travel or obtain a credit for future travel. WATCH | The impact of the flight attendants' strike on travellers: Sides at an impasse on pay Air Canada and CUPE have been in contract talks for about eight months but have yet to reach a tentative deal. Both sides say they remain far apart on the issue of pay and the unpaid work flight attendants do when planes aren't in the air. The airline's latest offer included a 38 per cent increase in total compensation, including benefits and pensions over four years, that it said "would have made our flight attendants the best compensated in Canada." But the union pushed back, saying the proposed eight per cent raise in the first year didn't go far enough because of inflation. WATCH | Thousands of Air Canada flight attendants walk off the job: Solve the daily Crossword
Yahoo
2 hours ago
- Yahoo
Air Canada flight attendants in Winnipeg angry after feds order binding arbitration
Striking flight attendants in Winnipeg reacted with anger and frustration on Saturday, after the federal government said they would order binding arbitration, and send them back to work. "I'm very, very disappointed, our bargaining rights were taken away," Air Canada flight attendant Shannon Marion said on Saturday. "Politicians are always there for the people during election time, but when it comes to when they're in office, I guess it's big-corporation time. "I guess Canadians don't have a voice anymore." Marion was reacting after just hearing the news Saturday afternoon (EST) that Jobs Minister Patty Hajdu had invoked Section 107 of the Canada Labour Code to order binding arbitration between Air Canada and its union, and has ordered operations to resume at Canada's largest airliner. More than 10,000 flight attendants walked off the job at midnight CT on Saturday after the Canadian Union of Public Employees, the union representing them, and Air Canada were not able to reach a labour deal last week. Members of the Air Canada component of CUPE voted 99.7 in favour of a strike mandate last week, as the two sides said they were at an "impasse." The strike was short-lived however, as Hajdu announced early Saturday afternoon they would go to binding arbitration in the labour dispute. Under the order, the existing collective agreement between Air Canada and flight attendants will be extended until a new agreement is instituted by the arbitrator, Hajdu said. CUPE Manitoba president Gina McKay, who was on Saturday's picket line at the airport in Winnipeg, blasted the federal government for getting involved in the labour dispute. "The Liberals are taking away our right to strike, they're interfering at the bargaining table," McKay said. "We're here to bargain fairly, collectively, that is our legal right in Canada. "And what we're seeing here today is that these workers are having their bargaining rights, their union rights stripped from them, so it's an absolute shame to see that the bargaining table has been taken away, when we're here in a fair way." Jangdip Ghuman is trying to get back to Munich, Germany after spending time with family in Winnipeg, and said because of cancelled Air Canada flights, he could be out of a job if he doesn't get back soon. "I am also a worker in Germany, and I feel very bad for my situation," he said. Ghuman said his boss has threatened that he could be fired from his job if he misses work due to the strike, which he said has left him stressed and anxious as he tries to get home, and hold on to his job. Air Canada had warned that about 130,000 customers a day could be affected by a disruption. In a statement Hajdu said, "After eight months of negotiations by the parties, and after meeting with both parties last night and urging them to work hard to reach a deal, it is disappointing to have to conclude today that Air Canada and CUPE flight attendants are at an impasse and remain unable to resolve their dispute. "The government firmly believes that the best deals are reached by the parties at the bargaining table. It has now become clear that this dispute won't be resolved at the table. Canadians are increasingly finding themselves in very difficult situations and the strike is rapidly impacting the Canadian economy," the minister added. As of Saturday it was unclear when Air Canada flight attendants could be back on the job and when the airliner planned to resume normal operations.
