Air Canada says it is restarting flights Sunday
The strike stranded more than 100,000 travelers around the world during the peak summer travel season.
The country's largest airline said in a release that the first flights will resume Sunday evening but that it will take several days before its operations return to normal. It said some flights will be canceled over the next seven to 10 days until the schedule is stabilized.
Less than 12 hours after workers walked off the job, Federal Jobs Minister Patty Hajdu ordered the 10,000 flight attendants back to work, saying now is not the time to take risks with the economy and noting the unprecedented tariffs the U.S. has imposed on Canada. Hajdu referred the work stoppage to the Canada Industrial Relations Board.
The airline said Sunday the Canada Industrial Relations Board has extended the term of the existing collective agreement until a new one is determined by the arbitrator.
The shutdown of Canada's largest airline early Saturday was impacting about 130,000 people a day. 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.
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.
Flight attendants walked off the job around 1 a.m. EDT on Saturday. Around the same time, Air Canada said it would begin locking flight attendants out of airports.
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.
Hajdu maintained that her Liberal government is not anti-union, saying it is clear the two sides are at an impasse.
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.'
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 have said 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% 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.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
Canadian dollar steadies ahead of domestic inflation data
By Fergal Smith TORONTO (Reuters) -The Canadian dollar was barely changed against its U.S. counterpart on Monday as oil prices rose and investors awaited domestic inflation data that could guide expectations for the Bank of Canada policy outlook. The loonie was trading nearly unchanged at 1.3814 per U.S. dollar, or 72.39 U.S. cents, after moving in a range of 1.3784 to 1.3831. Canada's consumer price index report for July is due on Tuesday. Economists expect the annual rate of increase in consumer prices to ease to 1.8% from 1.9% in June, but measures of underlying inflation that are closely tracked by the BoC are forecast to remain well above the central bank's 2% target. "Tomorrow's Canadian inflation report should remain too hot for comfort," Karl Schamotta, chief market strategist at Corpay, said in a note. "The central bank's preferred trim and median core measures are likely to hold close to the 3% threshold for now as retaliatory tariffs and still-resilient consumer spending levels translate into upward pressure on prices." Investors see a 68% chance that the BoC would leave interest rates unchanged at its next policy decision on September 17. The central bank has been on hold since lowering the benchmark rate to 2.75% in March. The price of oil, one of Canada's major exports, was up 0.5% at $63.11 a barrel, while the U.S. dollar notched gains against a basket of major currencies. Canadian housing starts unexpectedly rose in July, advancing 4% from the previous month, data from the national housing agency showed. Data on Friday from the U.S. Commodity Futures Trading Commission showed that speculators have raised their bearish bets on the Canadian dollar to the highest level since June. The Canadian 10-year yield was up 2.7 basis points at 3.489%, after earlier touching its highest level since July 30 at 3.506%.
Yahoo
44 minutes ago
- Yahoo
Carney 'disappointed' by Air Canada impasse, urges both sides to reach a deal
OTTAWA — Prime Minister Mark Carney said Monday he's disappointed Air Canada and the union representing its flight attendants weren't able to reach a deal after eight months of negotiations. Carney said he is urging both sides to quickly resolve the situation causing major chaos for travellers. "We are in a situation where literally hundreds of thousands of Canadians and visitors to our country are being disrupted by this action," he said. Carney made the comments to reporters ahead of a meeting with Ontario Premier Doug Ford in Ottawa. Flight attendants went on strike early Saturday morning after talks broke down and the two sides failed to reach a deal on Friday. Jobs Minister Patty Hajdu referred the matter to the Canada Industrial Relations Board on Saturday in a bid to end the dispute through binding arbitration, saying the two parties remained too far apart to reach a deal on their own. "It was the judgment of both the union and the company that they were at an impasse. That's not my judgment, it's their judgment," Carney said Monday. He also said that Ottawa recognizes the "critical role that flight attendants play in keeping Canadians and their families safe as they travel," adding that it's "important that they're compensated equitably at all times." The union representing the flight attendants ignored Ottawa's back-to-work order over the weekend and launched a legal challenge against the move. On Monday morning the labour board declared the strike unlawful and ordered the union's leadership to tell its striking workers to go back to work. Following his meeting with Carney, Ford told reporters that everyone deserves a fair wage and that the final deal has to be in the best interest of the workers, the company and Canadians. Asked about the union's decision to initially defy the back-to-work order, Ford said it was up to the federal government to "make sure they sit down at the table." "That always happens when you have labour issues, but they'll work it out. It's happened before, and they'll get things moving," he said. — with files from Kyle Duggan This report by The Canadian Press was first published Aug. 18, 2025. Craig Lord, The Canadian Press
Yahoo
an hour ago
- Yahoo
Maryland's first-in-the-nation tax on digital ads violated Big Tech's free speech, judges say
Digital Ad Tax ANNAPOLIS, Md. (AP) — Maryland's first-in-the-nation tax on digital advertising violated the Constitution, a federal appeals court says, because blocking Big Tech from telling customers about the tax violates the companies' right to free speech. Supporters say Maryland needed to overhaul its tax methods in response to significant changes in how businesses advertise. The tax focuses on large companies that make money advertising on the internet such as Meta, Google and Amazon, who say they're being unfairly targeted. The ongoing legal fight is being watched by other states that are considering taxes for online ads. Maryland estimated the tax could raise about $250 million a year to help pay for a sweeping K-12 education measure. Maryland's law says the companies must not only pay the tax, but avoid telling customers how it affects pricing, with no line items, surcharges or fees, said the appeals court Friday in siding with trade associations fighting the tax. Judge Julius Richardson cited the Colonial-era Stamp Act, which helped spark the Revolutionary War, and wrote that 'criticizing the government — for taxes or anything else — is important discourse in a democratic society.' The plaintiffs contended Maryland lawmakers were trying to insulate themselves from criticism and political accountability by forbidding companies from explaining the tax to their customers. 'A state cannot duck criticism by silencing those affected by its tax,' the judge wrote. The unanimous ruling by the 4th U.S. Circuit Court of Appeals reverses a decision by U.S. District Judge Lydia Kay Griggsby and sends the case back to her with instructions to consider an appropriate remedy in light of the panel's decision. Trade groups praised the decision. 'Maryland tried to prevent criticism of its tax scheme, and the Fourth Circuit recognized that tactic for what it was: censorship,' said Paul Taske, co-director of the NetChoice Litigation Center, said in a statement. The law imposes a tax based on global annual gross revenues for companies that make more than $100 million globally. Under the law, the tax rate is 2.5% for businesses making more than $100 million in global gross annual revenue; 5% for companies making $1 billion or more; 7.5% for companies making $5 billion or more and 10% for companies making $15 billion or more. The law has been challenged in multiple legal venues, including Maryland Tax Court, where the case is ongoing. The Maryland General Assembly, which is controlled by Democrats, overrode a veto of the legislation in 2021 by then-Gov. Larry Hogan, a Republican. Solve the daily Crossword
