Chaos Looms as Air Canada Flight Attendants Issue Strike Notice

The union representing Air Canada’s flight attendants has given the airline a 72-hour strike notice after the two sides failed to reach a new collective bargaining agreement. Ten thousand flight attendants can now walk off the job on Saturday, August 16 at 12:58 a.m. ET. 

The strike notice was issued by the Air Canada Component of CUPE at 12:58 am today, and was quickly followed by a lockout notice issued by Air Canada at 1:30 am.

Barring a last-minute settlement or federal government intervention, the summer travel plans of hundreds of thousands of Canadians are now in limbo.

Air Canada announced on Tuesday afternoon that it had reached an “impasse” in negotiations with the union, which earlier in the day had declined a proposal from the airline to enter a binding arbitration process.

“Interest arbitration, while utilized in specific past circumstances, is not an appropriate path in this round of bargaining,” CUPE stated in a letter to Air Canada. 

“Our membership has been clear in providing us with a strong strike mandate, reflecting their determination to secure a contract that addresses the key issues, including wages, unpaid work, per diems, pensions, work rules, and rest provisions, many of which are still outstanding. We remain committed to using all available tools within the bargaining process.”

Air Canada says it will notify customers whose flights are potentially cancelled and they will be eligible for a full refund, which can be obtained through its website or the Air Canada mobile app.

Air Canada says it has made arrangements with other Canadian and international airlines to provide alternative travel options where possible. But considering that it is peak summer and airlines are already flying with a high load factor, it won’t be easy be easy to accommodate the more than 100,000 passengers carried daily by Air Canada and Air Canada Rouge.

Yesterday, Air Canada issued a statement saying it has offered flight attendants a 38% pay hike over four years, including payment for some duties that are now unpaid. But the union disputed some of the numbers and claimed that the concession on some unpaid work would only see FAs getting half of their current hourly rate.

The Federal government, through the Ministry of Jobs and Families, has the power to impose arbitration on parties unsuccessful in finding agreement. Such a case has to be grounded in the best interests of the economy and the citizens of Canada.

Air Canada could be characterized by the federal government as a national carrier providing an essential service. It would then be able to send the parties to arbitration. There’s an industry precedent for this in recent history — WestJet and the union representing its mechanics were sent to binding arbitration last June, after being unable to negotiate a first contract.

Air Canada says that in the event of a disruption, it strongly recommends against customers with tickets going to the airport unless they have a confirmed booking and their flights are showing as operating. Customers and travel advisors are being asked to use self-service tools as contact centre wait times are expected to be highly elevated.

Under Canada’s Airline Passenger Protection Regulations, a labour disruption is considered outside of Air Canada’s control, so passengers will not be eligible for compensation for delayed or cancelled flights, meals, hotels or other incidental expenses.

Over a week ago, CUPE members voted 99.7% in favour of giving their union a strike mandate, which is effective for 60 days.

As well as the disruption for Canadian travellers and major headaches for travel advisors, Air Canada and the greater Canadian economy stand to suffer from the labour breakdown. Air Canada stock has already dropped over 14% in the past month, and estimates are that a strike could lead to a daily loss to Canada’s economy of around $100 million.