Air Canada faces shutdown as cabin crew union talks hit ‘impasse’

A cabin crew strike threatens to shut down Air Canada for 72 hours from Saturday.

 

Canada’s largest airline admitted it had reached an “impasse” in talks with a union representing 10,000 flight attendants.

 

The carrier warned that a statutory strike notice could be issued at midnight tonight (Wednesday) local time, “shutting down the airline as early as August 16”.

 

Air Canada and sister airline Air Canada Rouge carry about 130,000 passengers a day who could be affected by disruption. 

 

“This includes the 25,000 Canadians that the airline flies home from abroad each day, who could be stranded,” the airline noted.

 

“As events at other airlines in recent years have shown, sudden or unmanaged work stoppages result in chaos for travellers and shippers.  

 

“An unplanned shutdown is also a major risk for the company and its other employees. Air Canada operates globally to approximately 65 countries on six continents with a fleet of 259 aircraft.”

 

A statement said: “Air Canada now believes the talks are at an impasse, after the union submitted a counter offer seeking exorbitant increases, beyond those presented in earlier submissions, and today rejected an offer by the company to enter binding, third-party arbitration. 

 

“The arbitration process proposed would protect the interests of the parties by having them agree on an independent arbitrator who would impartially take into account the parties’ positions to arrive at a new, balanced contract by which both would abide.”

 

The airline insisted that it remains available to negotiate with the Canadian Union of Public Employees (CUPE) “but time is running short, a situation exacerbated by the fact that CUPE refused to negotiate for ten precious days while it sought a strike mandate”.

 

Chief human resources and public affairs officer Arielle Meloul-Wechsler said: “Air Canada has been negotiating with CUPE for eight months and although we have settled many items, none of which required concessions, we remain far apart on key issues. 

 

"We are disappointed our proposal to resolve the outstanding items fairly through arbitration has been rejected by the union and it is instead insisting on unsustainable wage increases. 

 

"We are now at an impasse in talks, with the union in a position to issue a strike notice at midnight tonight, creating tremendous uncertainty for hundreds of thousands of travellers and companies shipping critical, time-sensitive goods. 

 

“Air Canada is now looking at all remaining options, including a request for government-directed arbitration, to prevent a disruption or at least remove this intolerable uncertainty for our customers.” 

 

The airline said it tabled a revised comprehensive settlement to the union on Monday that provided for a 38% total compensation increase over four years, with 25% in the first year and sought no concessions from the union in return. 

 

“The offer also addressed the issue of ground pay, improved pensions and benefits, increased crew rest and contained other improvements, including those to enhance work-life balance,” the airline added.

 

CUPE president Wesley Lesosky said: “After nine months of the company delaying at the bargaining table on the fundamental issues - unpaid work and poverty wages - the union asked for and received an unprecedented 99.7% strike mandate from its membership. 

 

"Flight attendants turned out by the hundreds at airports across the country for a powerful showing of solidarity for their August 11 Day of Action.

 

“Air Canada has seen how determined and united flight attendants are to end unpaid work and win a real cost-of-living increase to wages.

 

“Now, Air Canada has decided they no longer want to negotiate. They want to go to arbitration, rather than stay at the bargaining table and bargain a new contract.

 

“Everyone knows the best deals are negotiated at the bargaining table, not handed down by an outside third-party. Then why does Air Canada want the union to agree to arbitration?

 

“First, arbitrators rely on precedent and the status quo to make their determinations. But Air Canada flight attendants are trying to break the status quo by ending the historic abuse of unpaid work in this industry. Air Canada wants an arbitrator to do their dirty work for them to keep the status quo intact.

 

“Second, an arbitrator’s determination would be final. Members would not get a chance to vote on it. Air Canada wants to go to arbitration because they want to take away our members’ democratic voice.

 

“The union has declined the company’s proposal to preserve the exploitative status quo and take away our members’ voice.

 

"The Air Canada Component of CUPE remains at the bargaining table, ready to negotiate.”