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Economics

Air Canada Strike Grounds Flights, Strands Thousands of Passengers

Labor dispute halts operations, impacting 130,000 travelers daily

Naffah

Hundreds of flights have been canceled as Air Canada’s flight attendants, represented by the Canadian Union of Public Employees (CUPE), initiated a strike over stalled wage negotiations.

The action, which began just before 01:00 ET on Saturday, has suspended all operations for Air Canada and its budget arm, Air Canada Rouge.

The airline, the largest carrier in Canada, estimates that approximately 130,000 passengers will be affected daily.

Regional operators like Air Canada Jazz and PAL Airlines continue to operate unaffected.

Impact on Travelers and Operations

The strike, the first since 1985, has led to significant disruptions, with Air Canada canceling around 500 flights per day.

Passengers have been advised not to travel to airports unless they have confirmed bookings with other airlines.

At major Canadian airports, flight attendants are picketing, while travelers scramble to secure alternative bookings.

The airline began scaling back operations earlier in the week, with 623 flights canceled by Friday night, impacting over 100,000 passengers.

Wage Disputes and Negotiation Breakdown

The core issue fueling the strike is a disagreement over wages and compensation for ground work, such as boarding.

Air Canada’s latest offer included a 38% increase in total compensation over four years, with a senior flight attendant earning an average of CAN$87,000 ($65,000) annually by 2027.

CUPE, representing 10,000 flight attendants, rejected the proposal as insufficient, arguing it falls below inflation and market value.

The union also opposes uncompensated ground duties, a practice deemed standard in the industry but perceived as unfair by some.

Economic and Political Ramifications

The strike’s timing exacerbates challenges for Canadian businesses already strained by a U.S. trade dispute.

The Business Council of Canada warned that the work stoppage could harm national supply chains and passenger travel.

Air Canada has urged the federal government to enforce binding arbitration, a move CUPE opposes, asserting it has negotiated in good faith for over eight months.

The government has encouraged both parties to resume talks, but no resolution has been reached, leaving travelers and businesses bracing for further disruptions.

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