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RTHK
10 minutes ago
- Business
- RTHK
Air Canada strike begins as contract talks break down
Air Canada strike begins as contract talks break down An Air Canada ground staff member addresses the issue of flight disruption with a passenger at Toronto Pearson International Airport. Photo: Reuters Air Canada's unionized flight attendants walked off the job early on Saturday after contract talks with the country's largest carrier stalled, in a move that could disrupt travel plans for more than 100,000 passengers. The union representing more than 10,000 Air Canada flight attendants confirmed the action in a social media post at around 0100 ET, 1pm Hong Kong time, in the first strike by cabin crew since 1985. Air Canada, which flies directly to 180 cities worldwide, said it had "suspended all operations" in response to the work stoppage. "Air Canada is strongly advising affected customers not to go to the airport," it said, adding that it "deeply regrets the effect the strike is having on customers." Attendants are currently paid when the plane is moving and the union is 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 cancelling 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 United States. 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 percent of their hourly rate. The carrier had offered a 38 percent increase in total compensation for flight attendants over four years, with a 25 percent 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 labour 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." (Reuters)
New York Post
an hour ago
- Business
- New York Post
Air Canada cabin staff go on strike, grounding hundreds of flights
Air Canada's unionized flight attendants walked off the job early on Saturday morning after contract talks with the country's largest carrier stalled, in a move that could disrupt travel plans for more than 100,000 passengers. The union representing more than 10,000 Air Canada flight attendants confirmed the action in a social media post at around 1:00 a.m. 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. 5 Air Canada union activists interrupt a press conference by airline executives on Aug. 14, 2025. REUTERS 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 canceled 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 canceled and then it was delayed and then it was canceled again,' he said. 5 Air Canada planes sit on the tarmac at Pearson International Airport in Toronto, Canada on Aug. 14, 2025. Getty Images 5 Air Canada flight attendants walk through the terminal of Montreal-Pierre Elliott Trudeau International Airport in Dorval, Quebec on Aug. 15, 2025. AP 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 US. 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. 5 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. AP 5 A passenger looks at the canceled and delayed Air Canada flights on a departure board at Montreal-Pierre Elliott Trudeau International Airport. AP 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.'
Business Wire
an hour ago
- Business
- Business Wire
Air Canada-CUPE Negotiations End in Impasse
TORONTO--(BUSINESS WIRE)--Negotiations between CUPE and Air Canada have ended in impasse. Air Canada still refuses to compensate flight attendants for all hours worked. The union has been firm: all safety-related duties should be paid at full hourly rate. Air Canada does not agree. On wages, Air Canada's last offer will still leave flight attendants living below poverty levels for many years to come. We are heartbroken for our passengers. We do not want to go on strike, and we do not want to be locked out, but it is clear that Air Canada has no incentive to bargain. Rather, Air Canada has refused to bargain in good faith due to the likelihood of the federal government using Section 107 of the Canada Labour Code to interfere in negotiations and have a contract imposed by an outside third-party arbitrator.
Business Times
an hour ago
- Business
- Business Times
Air Canada cabin staff go on strike, grounding hundreds of flights
[MONTREAL] Air Canada's unionised flight attendants walked off the job early on Saturday (Aug 16) morning after contract talks with the country's largest carrier stalled, in a move that could disrupt travel plans for more than 100,000 passengers. 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 cancelling 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 labour dispute and he had been rebooked by Air Canada to a different destination. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up '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 US. 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 per cent of their hourly rate. The carrier had offered a 38 per cent increase in total compensation for flight attendants over four years, with a 25 per cent 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 labour are outweighed by lost earnings in the airline's most important quarter. 'We think it would be best for AC to achieve labour peace,' the note said. 'Not budging on negotiations risks being a Pyrrhic victory.' REUTERS
Canada News.Net
9 hours ago
- Business
- Canada News.Net
Air Canada flight attendants have issued a strike notice: Here's what you need to know
Share article The union representing Air Canada flight attendants issued a 72-hour strike notice to the company, setting the stage for a potential work stoppage on Aug. 16. In response, the airline issued a 72-hour lock-out notice to Air Canada flight attendants, stating it had begun preparations to suspend flights in anticipation of the strike. Taken together, these actions have effectively set the stage for the first complete shutdown of Air Canada due to labour strife since Air Canada pilots held an 11-day strike in 1998. A shutdown would have a significant impact on Air Canada's passenger travel plans during the height of the summer travel season. Air Canada and Air Canada Rouge carry approximately 130,00 passengers a day, and about 25,000 of these travellers include those returning to Canada from abroad. All of these passengers are covered by Canada's Air Passenger Protection Rights, which airlines are obligated to implement in the event of flight cancellations. These regulations are intended to ensure passengers are treated fairly and have recourse when things go wrong. The concern during this peak travel season is the availability of seats on other carriers that Air Canada is obligated to secure for passengers on its cancelled flights. The resulting shortage of capacity will undoubtedly result in cancelled vacations or family gatherings, with Air Canada offering refunds to those passengers for whom it will be unable to find acceptable travel arrangements. The airline and the Canadian Union of Public Employees (CUPE) have been negotiating a new collective agreement since March. Air Canada said recently negotiations have reached an "impasse" over issues like wages and labour conditions. The wages issue has been highlighted as a major negotiation item by CUPE, with examples of junior flight-attendant salaries that are substantially below the Canadian minimum wage. Based on my analysis of collective agreement wage rates for Air Canada CUPE flight attendants, I estimate current wages would need to rise by about 32 to 34 per cent to match the 2025 purchasing power of what flight attendants earned in 2014, after adjusting for inflation. According to CUPE, Air Canada only pays flight attendants when the aircraft's brakes are released at departure until the brakes are applied on arrival, meaning any work they do before boarding and after deplaning isn't compensated. The union says flight attendants in Canada perform about 35 hours of unpaid duties every month. Several attempts have been made by labour groups over the years to address the practice of unpaid duties for flight attendants. This culminated with the introduction of private member's Bill C-415 in October 2024 by NDP MP Bonita Zarrillo. The bill proposed amending the Canada Labour Code to require employers to pay flight attendants for all time spent on pre-flight and post-flight duties, as well as for mandatory training programs at their full rate of pay. Bill C-415 received First Reading in Parliament, but did not progress beyond, expiring at the end of the parliamentary session in January 2025. But support for such legislation remains strong, as demonstrated by a letter sent by the Leader of the Opposition to the Minister of Labour on Aug. 5. A February 2025 article in The Conversation Canada noted the efforts of organized labour in obtaining ground pay for flight attendants and concluded: "With contract negotiations underway, CUPE's airline division has an opportunity to push for better working conditions and pay structures that reflect all hours worked. Canadian airlines must address the issue of unpaid labour and, ultimately, implement more equitable workplace standards for flight attendants." A number of airlines have implemented flight attendant pay that goes beyond the traditional "flight pay." Delta Airlines was the first carrier to introduce the practice in 2022, followed by American Airlines in 2024. United Airlines has included a similar provision in a proposed contract now awaiting ratification. In Canada, both Porter Airlines and Pascan Aviation offer flight attendants pay for work performed during the boarding process. It is worth noting the collective agreement negotiation strategies of both CUPE and Air Canada. CUPE has been quite transparent in its goals for its Air Canada members, citing wage increases needed to return to a living wage - for junior flight attendants, in particular - and the need to obtain pay for currently uncompensated work. These goals have remained steadfast through the eight months of dialogue with Air Canada, and have been supported by a 99.7 per cent vote in favour of a strike if negotiations fail. Air Canada's negotiation strategy mirrors its 2024 negotiations with pilots, when it relied on government intervention to pressure them to reach an agreement, but ultimately yielded late in the process to most of the pilots' demands. This may yet be Air Canada's plan this time as well, with a strike deadline looming in the early hours of Saturday, Aug. 16. Is is worth noting that previous collective agreement negotiations with Air Canada and its flight attendants have been characterized by significant political intrigue, which many in the industry had believed to be a thing of the past. It remains interesting reading. If a strike does proceed, Air Canada could face financial losses in the range of $50 to $60 million a day - a sum that will undoubtedly have Air Canada back at the negotiation table within the week.
