Berliner Boersenzeitung - Air Canada flights grounded as government intervenes in strike

Canada's largest airline, which has 130,000 daily passengers and flies directly to 180 cities worldwide, said that all flights would be cancelled until Sunday afternoon pending a decision by the country's industrial relations board.

Air Canada had stopped all operations after some 10,000 flight attendants began industrial action fueled by a wage dispute just after midnight on Saturday.

Hours later, Canada's labor policy minister, Patty Hajdu, moved to invoke a legal provision that would halt the strike and force both sides into binding arbitration.

"This is not a decision that I have taken lightly. The potential for immediate negative impact on Canadians and our economy is simply too great," Hajdu told journalists.

However, she said it could still take five to 10 days for Air Canada to resume regular services after the disruption.

Air Canada said in a statement later Saturday that all flights remained grounded pending a decision by the Canada Industrial Relations Board on the government's arbitration order.

The airline also said customers on cancelled flights were being offered a full refund.

It had earlier urged customers not to go to the airport if they have a ticket for Air Canada or its lower-cost subsidiary Air Canada Rouge.

It said flights by Air Canada Express, which are operated by a third party, would not be impacted by the walkout.

- 'Terrible precedent' -

The Canadian Union of Public Employees (CUPE), which is representing the workers, said its members would remain on strike until the government formally issues an order that they return to work.

"Please remember there is only a referral, we are still in a legal position to strike and will continue to do so, we must show the company we are in control of this," the union's Air Canada branch wrote on Facebook.

In a separate statement, CUPE slammed the Canadian government's intervention as "rewarding Air Canada's refusal to negotiate fairly by giving them exactly what they wanted."

"This sets a terrible precedent," it added.

The union later pointed out that Maryse Tremblay, the chair of the Canada Industrial Relations Board, previously worked as legal counsel for Air Canada.

Tremblay ruling on whether to end the strike was "an almost unthinkable display of conflict-of-interest," the union said on Facebook.

- Unpaid ground work -

In addition to wage increases, the union says it wants to address uncompensated ground work, including during the boarding process.

Rafael Gomez, who heads the University of Toronto's Center for Industrial Relations, told AFP it is "common practice, even around the world" to compensate flight attendants based on time spent in the air.

An average passenger, not familiar with common industry practice, could think, "'I'm waiting to board the plane and there's a flight attendant helping me, but they're technically not being paid for that work,'" he said before the strike began.

Air Canada detailed its latest offer in a Thursday statement, specifying that under the terms, a senior flight attendant would on average make CAN$87,000 ($65,000) by 2027.

CUPE has described Air Canada's offers as "below inflation (and) below market value."

The union has also rejected requests from the federal government and Air Canada to resolve outstanding issues through independent arbitration.

Canada's economy, though showing resilience, has begun feeling the effects of US President Donald Trump's trade war, with his tariffs hitting crucial sectors like auto, aluminum and steel.

In a statement issued before the strike began, the Business Council of Canada warned an Air Canada work stoppage could add further pain.

"At a time when Canada is dealing with unprecedented pressures on our critical economic supply chains, the disruption of national air passenger travel and cargo transport services would cause immediate and extensive harm to all Canadians," it said.

(L.Kaufmann--BBZ)