Air Canada cabin staff go on strike, grounding hundreds of flights
The union representing more than 10,000 Air Canada flight attendants confirmed the action in a social media post at around 0100 ET in the first strike by cabin crew since 1985.
Attendants are currently paid when the plane is moving and the union was seeking to also be compensated for time on the ground between flights and helping passengers board.
Montreal-based Air Canada, which is expected to respond quickly by locking out the workers, has said it anticipated canceling 500 flights by the end of Friday during the busy summer travel season. It expected around 100,000 people to be affected on Friday alone.
Flight attendants are likely on Saturday to picket at major Canadian airports, where passengers were already trying to secure new bookings earlier in the week, as the carrier gradually wound down operations.
Passenger Freddy Ramos, 24, said on Friday at Canada's largest airport in Toronto that his earlier flight was cancelled due to the labor dispute and he had been rebooked by Air Canada to a different destination.
"Probably 10 minutes prior to boarding, our gate got changed and then it was cancelled and then it was delayed and then it was cancelled again," he said.
Air Canada and its low-cost affiliate Air Canada Rouge normally carry about 130,000 customers a day. Air Canada is also the foreign carrier with the largest number of flights to the U.S.
While the dispute has generated support from passengers on social media for the flight attendants, Canadian businesses reeling from a trade dispute with the United States urged the federal government to impose binding arbitration on both sides, which would end the strike.
Air Canada has asked the minority Liberal government of Prime Minister Mark Carney to order both sides into binding arbitration although the Canadian Union of Public Employees, which represents the attendants, said it opposed the move.
The Canada Labour Code gives Jobs Minister Patty Hajdu the right to ask the country's Industrial Relations Board to impose binding arbitration in the interests of protecting the economy.
Hajdu has repeatedly urged the two sides, which are not bargaining, to return to the table.
The union has said Air Canada offered to begin compensating flight attendants for some work that is now unpaid but only at 50% of their hourly rate.
The carrier had offered a 38% increase in total compensation for flight attendants over four years, with a 25% raise in the first year, which the union said was insufficient.
In a note to clients on Friday, analysts at financial services firm TD Cowen urged the carrier to "extend an olive branch to end the impasse," adding that investors are worried that any cost savings on labor are outweighed by lost earnings in the airline's most important quarter.
"We think it would be best for AC to achieve labor peace," the note said. "Not budging on negotiations risks being a Pyrrhic victory."
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Reuters
an hour ago
- Reuters
Air Canada flight attendants picket at airports; businesses seek government intervention
MONTREAL/TORONTO, Aug 16 (Reuters) - Hundreds of Air Canada ( opens new tab employees formed picket lines outside major Canadian airports and business leaders sought government intervention on Saturday, hours after unionized flight attendants walked off the job over a wage contract dispute. The strike, which started just before 1 a.m. EDT (0500 GMT), forced Canada's largest airline to cancel all of its 700 daily flights, affecting more than 100,000 travelers who had to find alternative flights or stay put. The airline said in a statement on Saturday that it has started locking out thousands of flight attendants in response to the strike action. The carrier had offered a 38% increase in total compensation for flight attendants over four years, with a 25% raise in the first year, which the Canadian Union of Public Employees said was insufficient. CUPE, representing more than 10,000 Air Canada flight attendants, confirmed the work stoppage in a social media post. It is the first strike by Air Canada flight attendants since 1985. Wesley Lesosky, president of the Air Canada component of CUPE, said in a press conference in Toronto that, as of Saturday morning, there were no bargaining sessions scheduled between the two sides, which have held on-and-off negotiations for months. "We are here because Air Canada forces us to work for free for hours and hours every day, and we are here because we are not going to accept it anymore," he said. Outside Toronto Pearson International Airport - the country's busiest - hundreds of cabin crew waved flags, banners and picket signs. Union officials called on members to assemble outside all of the country's major airports, including in Toronto, Montreal, Calgary and Vancouver. Montreal-based Air Canada said the suspended flights included those operated by its budget arm, Air Canada Rouge. The stoppage would affect about 130,000 customers a day, the carrier said in a statement. Flights by Air Canada's regional affiliates - Air Canada Jazz and PAL Airlines - will operate as usual. The dispute between the union and the airline centers on wages. Attendants are currently paid only when their plane is moving. The union is seeking compensation for time spent on the ground between flights and when helping passengers board. The union has said Air Canada offered to compensate flight attendants for some work that is now unpaid but only at 50% of their hourly rate. A source close to the negotiations told Reuters the union is looking for parity on wages with Canadian leisure carrier Air Transat, where flight attendants approved a contract last year that provided for total compounded increases of 30% over five years, making them the highest paid in the industry in Canada. Air Canada did not confirm if such a proposal had been put forth by the union. "What we're asking for is not unreasonable. It is not a high demand. It is not that far off other competitors such as Air Transat. It is realistic and it is deserved," Lesosky from CUPE said. The impact of a strike will ripple far beyond Canada. Air Canada is the busiest foreign carrier servicing the U.S. by number of scheduled flights. While passengers have generally voiced support for the flight attendants on social media, Canadian businesses - already reeling from a trade dispute with the U.S. - have urged the federal government to impose binding arbitration on both sides, ending the strike. "The federal government has a responsibility to all Canadians to use its lawful authority to restore service today. The cost of inaction would be devastating," Goldy Hyder, president and CEO of the Business Council of Canada, said on Saturday. The Canada Labour Code gives Jobs Minister Patty Hajdu the right to ask the country's Industrial Relations Board to impose binding arbitration in the interests of protecting the economy. Air Canada has asked Prime Minister Mark Carney's minority Liberal government to act, but the union says it wants a negotiated solution, as binding arbitration would take pressure off the airline. Hajdu has repeatedly urged the two sides to return to the bargaining table. In a note to clients, analysts at financial services firm TD Cowen urged the carrier to "extend an olive branch to end the impasse," adding that investors are worried that any cost savings on labor would be outweighed by lost earnings in the airline's most important quarter.
BBC News
2 hours ago
- BBC News
What to know as Air Canada flights grounded and attendants go on strike
As Air Canada's flight attendants began their strike Saturday, the airline said it has "suspended all operations" while the labour dispute attendants gave a 72-hour strike notice earlier this week, after contract talks reached an impasse. Their union said the company was not addressing key issues such as wages and unpaid work, and the strike took effect shortly after midnight on afterwards, the carrier began delaying and cancelling some flights. On Friday, it expected to scrap 500 flights, affecting 100,000 passengers. With the strike in effect, the airline announced it would halt flights on its Air Canada and Air Canada Rouge travellers are scrambling as Canada's largest airline shuts down during the height of summer season, and the government is pleading with both sides to come to an agreement. Here's what to know. Why is Air Canada cancelling flights? The airline, which operates in 64 countries and has a fleet of 259 aircraft, warned that a "complete cessation of flying" would begin on Saturday, if the labour issues aren't resolved. Air Canada Express flights, which carry about 20% of Air Canada's daily customers, will not be affected. Still, a shutdown could affect 130,000 daily customers, including 25,000 Canadians. Upon receiving the strike notice, Air Canada issued its own 72-hour lock-out notice and began winding down operations, delaying and cancelling flights over those three Operations Officer Mark Nasr explained the airline's system was complex and not something "we can start or stop at the push of a button". What led to the strike? The Canadian Union of Public Employees (CUPE), representing 10,000 Air Canada attendants, has asserted that it bargained in good faith with the airline for more than eight months. The airline said it recently offered flight attendants a 38% increase in total compensation over four years, with a 25% raise in the first the union said the offer was "below inflation, below market value, below minimum wage" and would leave flight attendants unpaid for some hours of work, including waiting at airports ahead of flights or guiding the boarding process. They said that wages had not kept up with inflation, so that Air Canada's suggested pay increase was "in effect, a pay cut".Almost all of the attendants - 99.7% - voted to strike earlier this month. The company, meanwhile, has asked the government to representatives had facilitated some of the negotiations already, but the carrier went further and asked Canada's jobs minister, Patty Hajdu, to refer the matter for binding arbitration. How has the government responded? Earlier this week, Air Canada proposed having a third party step in to develop an agreement through what is called "binding arbitration", but the union rejected then asked the government to force the parties into binding arbitration, pointing to recent government interventions in rail, port and other negotiations. In binding arbitration, an independent third party sets the terms of a contract in an agreement that is legally union said in a statement on Friday that it had requested that Hajdu not intervene and, instead, allow "the parties to reach a resolution through free and fair negotiations, without undue interference". For the flight attendants, the only answer is for both sides to come back to the Hajdu side with the company, she would ask Canada's Industrial Relations Board to impose binding arbitration in order to protect the economy, according to Reuters, which reported that the board typically agrees to such requests, but after it has studied them for a few is pressure from other parts of Canada, as well. The Board of Trade for the Toronto region has called for a government intervention , while the province of Newfoundland and Labrador released a statement describing the impact of a strike as "catastrophic" for the tourism industry during the summer season. How long will the strike last? That's unclear. When Air Canada pilots went on strike in September 1998 for 13 days, all of the carrier's more than 600 daily flights were grounded, stranding passengers and costing the airline C$133m ($96m; £71m) before a negotiated deal was recent years, the federal government has stepped in during labour disputes by Air Canada workers by blocking strikes and imposing union said imposing arbitration would stop the first strike by the carrier's flight attendants since 1985. What to do if your flight is cancelled? Air Canada has said it will notify passengers if there is a change to the flight's scheduled departure time. As of Saturday, Air Canada was "strongly advising" passengers not to go to the airport unless they had tickets on other whose flights are cancelled will be notified and receive a full refund, the airline said. The company has also made arrangements with other Canadian and foreign carriers to provide customers alternative travel it's a round trip, return flights are not automatically cancelled in case the passengers reaches the destination. Those bookings can be cancelled with no fees.
Reuters
3 hours ago
- Reuters
Air Canada flight attendants walk off job, picket lines set up at airports
TORONTO/OTTAWA, Aug 16 (Reuters) - Hundreds of Air Canada ( opens new tab employees formed picket lines outside major Canadian airports on Saturday, hours after unionized flight attendants walked off the job in a contract dispute that has disrupted travel for tens of thousands of passengers. The strike, which started just before 1 a.m. EDT (0500 GMT), had forced Canada's largest airline to suspend the majority of its 700 daily flights, affecting more than 100,000 travelers who were forced to find alternative flights or stay put. As of Saturday morning, there were no bargaining sessions scheduled between the two sides, which have held on-and-off negotiations for months. The Canadian Union of Public Employees, representing more than 10,000 Air Canada flight attendants, confirmed the stoppage in a social media post. It is the first strike by Air Canada flight attendants since 1985. Outside Toronto Pearson International Airport - the country's busiest - hundreds of cabin crew waved flags, banners and picket signs. Union officials called on members to assemble outside all of the country's major airports, including in Toronto, Montreal, Calgary and Vancouver. Montreal-based Air Canada said the suspended flights included those operated by its budget arm, Air Canada Rouge. The stoppage would affect about 130,000 customers a day, the carrier said in a statement. Flights by Air Canada's regional affiliates - Air Canada Jazz and PAL Airlines - will operate as usual. "Air Canada is strongly advising affected customers not to go to the airport unless they have a confirmed ticket on an airline other than Air Canada or Air Canada Rouge," the airline said. The dispute between the union and the airline centers on wages. Attendants are currently paid only when their plane is moving. The union is seeking compensation for time spent on the ground between flights and when helping passengers board. The union has said Air Canada offered to compensate flight attendants for some work that is now unpaid but only at 50% of their hourly rate. The carrier had offered a 38% increase in total compensation for flight attendants over four years, with a 25% raise in the first year, which the union said was insufficient. The impact of a strike will ripple far beyond Canada. Air Canada is the busiest foreign carrier servicing the U.S. by number of scheduled flights. While passengers have generally voiced support for the flight attendants on social media, Canadian businesses - already reeling from a trade dispute with the U.S. - have urged the federal government to impose binding arbitration on both sides, ending the strike. The Canada Labour Code gives Jobs Minister Patty Hajdu the right to ask the country's Industrial Relations Board to impose binding arbitration in the interests of protecting the economy. Air Canada has asked Prime Minister Mark Carney's minority Liberal government to act, but the union says it wants a negotiated solution, as binding arbitration would take pressure off the airline. Hajdu has repeatedly urged the two sides to return to the bargaining table. In a note to clients, analysts at financial services firm TD Cowen urged the carrier to "extend an olive branch to end the impasse," adding that investors are worried that any cost savings on labor would be outweighed by lost earnings in the airline's most important quarter. "We think it would be best for AC to achieve labor peace," the note said. "Not budging on negotiations risks being a Pyrrhic victory."
