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Air Canada will start cancelling flights from today (Thursday) as part of a three-day wind down of most of its operations after failing to resolve a pay dispute with cabin crew.
The first flights will be cancelled on August 14, with more on August 15, with a complete grounding of Air Canada and Air Canada Rouge services on August 16, the carrier confirmed.
This came as the airline issued a statutory 72-hour lockout notice to the Canadian Union of Public Employees (CUPE) representing 10,000 flight attendants at Air Canada and Air Canada Rouge after the union provided notice it intends to begin a strike on Saturday (August 16).
“To provide customers certainty, Air Canada will begin a phased wind down of most of its operations to be completed over the next three days. The airline has also sought government-directed arbitration to resolve the situation,” a statement said.
“By optimally positioning aircraft and crews ahead of a possible stoppage, Air Canada will be able to provide required routine maintenance and more quickly restore regular service.
“A controlled wind down allows Air Canada to advise customers in advance, reduces the chance of customers being stranded, provides the airline and customers the time and opportunity to make alternative travel arrangements, and gives customers more certainty.”
The airline has been unable to reach a tentative agreement with the union despite tabling a revised “comprehensive proposal” to the union on Monday, including a 38% total compensation increase over four years.
The offer also addressed the issue of ground pay, improved pensions and benefits, increased crew rest and contained other improvements.
Air Canada had also offered to CUPE to enter third-party, binding arbitration to settle the outstanding points of discussion in an additional attempt to prevent travel disruption.
CUPE has responded by issuing a notice to begin a strike as early as August 16.
Air Canada Express flights operated by Jazz and PAL Airlines will continue to operate as normal. But these regional partners only carry about 20% of Air Canada’s 130,000 daily passengers.
Air Canada chief executive Michael Rousseau said: “We regret the impact a disruption will have on our customers, our stakeholders and the communities we serve.
“However, the disappointing conduct of CUPE’s negotiators and the union’s stated intention to launch a strike puts us in a position where our only responsible course of action is to provide certainty by implementing an orderly suspension of Air Canada’s and Air Canada Rouge’s operations through a lockout.
“As we have seen elsewhere in our industry with other labour disruptions, unplanned or uncontrolled shutdowns, such as we are now at risk of through a strike, can create chaos for travellers that is far, far worse.”
He added: “Our latest offer included a 38% increase in total compensation over four years that would have made our flight attendants the best compensated in Canada, along with provisions for ground pay and other work-life balance, career and pension improvements.
“At the same time, we asked for no concessions from the union. Given this, while we remain available for discussions with CUPE, we have requested government-directed arbitration as we now view it as the only certain avenue to bring closure to bargaining and mitigate the impact on travellers, business and the Canadian economy.”
The union argued that Air Canada flight attendants “perform hours of critical safety-related duties for free”.
CUPE added: "The company has offered to begin compensating flight attendants for some of these duties - but only at 50% of their hourly rate, and the company is still refusing to compensate flight attendants for time spent responding to medical emergencies, fires, evacuations, and other safety and security-related issues on the ground.
“Meanwhile, on wages, Air Canada’s offer is below market value, below inflation, and below minimum wage.”