Air Canada is facing a major operational shutdown following a strike initiated by its flight attendants, which commenced shortly after midnight on Saturday. The Canadian federal government has intervened to bring both the airline and the union to the negotiating table through mandatory arbitration. This strike comes after attendants issued a 72-hour notice earlier in the week as negotiations reached a deadlock.

The union for the attendants, the Canadian Union of Public Employees (CUPE), claims that the company has failed to address critical issues, such as appropriate wage increases and compensation for unpaid work. Following the strike’s announcement, Air Canada began delaying and canceling flights, anticipating the cancellation of around 500 flights that would affect nearly 100,000 passengers.

The airline has announced a temporary stop in flights for its Air Canada and Air Canada Rouge services. However, Air Canada Express flights, which comprise about 20% of the airline’s daily travelers, are not impacted. This labor dispute has resulted in potential disruptions for more than 130,000 daily travelers, significantly affecting operations across 64 countries.

The situation escalated when CUPE accused Air Canada of making an insufficient offer of a 38% pay increase over four years, claiming it was inadequate in light of inflation and below market standards. With nearly all attendants (99.7%) voting in favor of the strike, the situation prompted Air Canada to issue its own lock-out notice, increasingly winding down operations over the notice period.

In response, Canada's Minister of Labour, Patty Hajdu, mandated that both parties enter binding arbitration to resolve their issues, stating the importance of maintaining workplace peace and protecting Canadians' interests. CUPE has expressed frustration with the government's intervention, arguing that it undermines their charter rights and the possibility of reaching a voluntary agreement.

The strike marks the first instance of flight attendants walking off the job since 1985. Its duration remains uncertain, drawing comparisons to prior disputes, such as the Air Canada pilots' strike in 1998, which resulted in significant operational costs for the airline.

Meanwhile, Air Canada is advising passengers to avoid the airport unless they have alternative airline tickets, while promising to provide full refunds for any canceled flights. Furthermore, the airline has sought agreements with other carriers to help stranded passengers find travel options.

As negotiations and potential arbitration proceed, the resolution of this labor dispute will be pivotal not just for the impacted employees but also for the millions who rely on Air Canada's operations for travel and tourism in Canada.