Air Canada union rejects binding arbitration as almost 300 flights axed
'The Air Canada Component of CUPE has respectfully urged Employment Minister Patty Hajdu not to intervene pursuant to section 107 of the Canada Labour Code thereby permitting collective bargaining to continue and allowing the parties to negotiate a resolution,' the union wrote in a statement.
'The Union submits that the appropriate course of action is for Air Canada to return to the table and resume good faith bargaining. Accordingly, Air Canada's request for ministerial intervention under section 107 should be firmly rejected.'
2:05
Air Canada asks for federal intervention to avoid imminent shutdown
The rejection comes just an hour after the airline said on X it has cancelled 294 total flights, with 55,726 people impacted.
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The airline's chief operations officer Mark Nasr said on Thursday he expected about 500 flights to be cancelled by end of day Friday, with a complete grounding as of Saturday morning.
Hajdu's press secretary Jennifer Kozelj confirmed to Global News a response had been received.
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'We thank the union for their response,' Kozelj wrote. 'We strongly urge the parties to work with federal mediators and get a deal done. Time's precious and Canadians are counting on you.'
Both sides are less than 24 hours away from possible job action, with each having called on the other to return to negotiations.
Air Canada executives defended their decision Thursday to request binding arbitration, saying they still want to reach a deal, but asked the government to consider intervening if negotiations or 'consensual arbitration' do not occur.
The union, however, criticized the airline's move, saying it has called on the federal government to 'interfere with negotiations.'
2:44
Air Canada starts cancelling flights at Vancouver airport ahead of strike
The looming strike also comes just as Canada Post was set to restart talks with its postal workers, also using federal mediators.
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The Crown corporation said Friday that talks set for that day and Monday had been postponed to next Wednesday due to mediators being unavailable.
In a statement announcing the postponement, the Canadian Union of Postal Workers said the Air Canada negotiations were having an impact.
'The Federal mediators will not be able to assist CUPW and CPC due to their current involvement in the Air Canada negotiations,' the union wrote.
With the strike and lockout getting closer, business groups have raised concerns about how much impact such job action could have on the country.
The Toronto Region Board of Trade said Friday that a complete shut down of Canada's largest airline would have 'broad-reaching economic consequences.'
'A disruptive work stoppage is occurring at precisely the moment when Canada is urgently seeking to reboot our economy and enhance our competitive position against mounting trade pressures,' Board of Trade chief executive Giles Gherson said in a statement.
'The economic stakes are higher than ever. Any slow down creates delay we cannot afford.'
The Canadian Federation of Independent Business also sounded the alarm, telling The Canadian Press one-third of small business depend on the summer tourism season for their revenues and members 'cannot afford to lose a single day.'
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Nasr said the cancellations before a strike or lockout has even begun are because 'sudden or unmanaged work stoppages produce a significantly worse disruption to travel than a planned suspension of flying.'
Nasr added that cancelling over several days would allow for an 'orderly restart' when job action ends, 'which under the best circumstance will take a full week to complete.'
According to the airline, about 130,000 travellers a day could be impacted during a strike.
Those impacted by cancellations have been advised they'll receive a text message and email advising them of their cancellation. They will then be offered a complete refund or the option of potentially being booked on another airline to complete their trip.
Air Canada said if a person cannot be rebooked, they will receive a refund.
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