Montreal/Toronto (with files from Canadian Press/NYT) – UPDATE – NYT is reporting; Just under 12 hours after Air Canada’s 10,000 flight attendants walked off the job, seeking better wages and creating travel chaos, the government imposed binding arbitration to shut down the strike.
“Canadians rely on air travel every day, and its importance cannot be understated,” Patty Hajdu, the labor minister, told reporters. “Now is not the time to take risks with the economy.”
Air Canada will not immediately begin flying, she said. An independent industrial relations board will need 24 to 48 hours for a review before issuing a back-to-work order. Ms. Hajdu said that Air Canada has told the government that restoring full service would take an additional five to 10 days.
She said that the airline and negotiators met through Friday night into Saturday morning. While an offer was made by one of the parties, she said, talks collapsed.
“It is clear that they are at an impasse,” she said.
The full statement from the Minister:
The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, issued the following statement regarding the collective bargaining negotiations between Air Canada and the Canadian Union of Public Employees (CUPE):
“After eight months of negotiations by the parties, and after meeting with both parties last night and urging them to work hard to reach a deal, it is disappointing to have to conclude today that Air Canada and CUPE flight attendants are at an impasse and remain unable to resolve their dispute.
The government firmly believes that the best deals are reached by the parties at the bargaining table. It has now become clear that this dispute won’t be resolved at the table. Canadians are increasingly finding themselves in very difficult situations and the strike is rapidly impacting the Canadian economy.
Flight attendants play a critical role in keeping Canadian families and workers safe as they travel. It is important that they be compensated fairly at all times.
The enormous impact of a nationwide labour disruption of this scale is already being felt by Canadians and visitors to our country. This impact will grow significantly with a prolonged dispute. This nationwide labour disruption is impeding the movement of passengers and critical cargo. In a year in which Canadian families and businesses have already experienced too much disruption and uncertainty, this is not the time to add additional challenges and disruptions to their lives and our economy.
Canadians rely on air travel to connect families, workers, and communities to each other and the world. Despite significant supports from the government, these parties have been unable to resolve their differences in a timely manner. The government must act to preserve stability and supply chains in this unique and uncertain economic context.
That is why I exercised my authorities under section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board to arbitrate this dispute. I am exercising this authority because it is critical to maintaining and securing industrial peace, protecting Canadians and promoting conditions to resolve the dispute. Despite the parties’ resolution of several key differences, the CIRB is best positioned to help them find a solution on the outstanding items.
Accordingly, I have asked the Board to assist the parties in reaching a settlement of the outstanding terms of their collective agreement by imposing final and binding arbitration and to extend the terms of the existing collective agreement until a new one is determined by the arbitrator.
This decision will help make sure that hundreds of thousands of Canadians and visitors to our country are not impacted because of cancelled flights. Further, the shipments of critical goods such as pharmaceuticals and organ tissue, over 40% of which are moved by Air Canada, should continue to reach their destinations.
Once again, I urge the parties to work towards a fair and timely resolution.”
ORIGINAL STORY – So much for summer travel plans. Air Canada is now in the process of notifying customers with imminent travel of additional cancelled flights and their options.
The union representing more than 10,000 Air Canada flight attendants says its members have walked off the job after it was unable to reach an eleventh hour deal with the airline.
The strike officially began just before 1 a.m. ET on Saturday.
The airline said all Air Canada and Air Canada Rouge flights would be cancelled amid the work stoppage. Around 130,000 customers will be affected each day that the strike continues, the company said.
“Air Canada deeply regrets the effect the strike is having on customers,” it said in a brief statement early Saturday morning.
Flights by Air Canada Express, which are operated by third-party airlines Jazz and PAL, are not affected.
Air Canada and CUPE have blamed each other for their bargaining impasse, with the union rejecting a request for binding arbitration and the company imposing a lockout.
The Air Canada component of the Canadian Union of Public Employees has said its main sticking points revolve around wages that have been outpaced by inflation during the course of its previous 10-year contract, along with unpaid labour when planes aren’t in the air.
