Air Canada has begun canceling flights from Thursday onwards as it prepares for the possibility of a strike by over 10,000 flight attendants on Saturday. The cancellation has been after talks between employees and management regarding compensation and working hours collapsed, leaving Canada’s biggest airline and air passengers hanging in limbo.
Strike Looms Over Summer Travel Peak
Montreal-based Air Canada said it plans to suspend operations on Saturday following a 72-hour strike notice from the flight attendants’ union. The union, represented by the Canadian Union of Public Employees (CUPE), cited stalled talks on compensation for non-flying duties, including boarding passengers and time spent waiting at airports.
The airline transports about 130,000 passengers a day on Air Canada and Air Canada Rouge combined. A summer travel season strike would hurt Canada’s tourist traffic, along with international travel to the United States, Europe, and Asia.
The Liberal government of Prime Minister Mark Carney is under pressure to act. Air Canada petitioned for arbitration to prevent the strike, but no action has been confirmed by officials such as Jobs Minister Patty Hajdu. Hajdu has called on both parties to keep negotiating.
Pay Dispute and Failed Negotiations
The strike is over compensation of flight attendants. Traditionally, attendants receive compensation only when planes are moving. But North American attendants now insist on compensation for pre-flight work and waiting time at airports.
Air Canada’s proposal was a 38% overall compensation increase over four years, with a 25% pay hike in the first year. The union contends that the offer would only increase real wages by 17.2%, below the rate of inflation. The carrier also made the suggestion to pay for unpaid overtime at 50% of an hour’s worth, something the union still objects to.
Negotiations hit an impasse Tuesday after the union spurned Air Canada’s offer to make arbitration binding. But union officials indicated Tuesday night that a second offer was made, and that they await the airline’s response.
Financial Pressures and Labor Confidence
Flight attendants are bargaining more confidently with Air Canada’s better 2024 earnings and the higher pay settlements granted to pilots after the pandemic. Nevertheless, increasing labor costs are challenging Air Canada, which saw second-quarter profits fall with weaker passenger traffic to the U.S.
Air Canada confirmed that the impacted customers will be fully refunded for canceled flights. While the company is attempting to mitigate disruptions, the threat of a strike illustrates persistent tensions between airline profitability and reasonable labor compensation.
As the clock runs down to Saturday, travelers, regulators, and the airline industry are all watching developments that have the potential to reshape Canada’s summer air travel landscape.
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