Air Canada has said that its talks with the Canadian Union of Public Employees (CUPE) have hit an impasse, prompting the airline to seek government intervention for an arbitration process. As the union expressed its intent to strike, the airline, in response, issued a 72-hour lockout notice to mitigate the impact. Air Canada and Air Canada Rouge operations will be completely suspended on August 16.
Air Canada flight attendants call for strike action
The Air Canada Component of CUPE, comprising over 10,000 flight attendants at Air Canada and Air Canada Rouge, had called for strike action if necessary earlier this month. A whopping 99.7% members voted for these measures, citing “unpaid work, work rules, and poverty-level wages” as primary issues with the airline.
The Canadian airline has said that its negotiations have reached an impasse. This could prompt strike action as early as August 16, 12:01 a.m. Eastern Time. Air Canada has said that a 72-hour strike or lockout notice could be issued at 12:01 a.m. ET on August 13. This could shut down airline operations as early as August 16.
The airline on Wednesday issued a lockout notice, stating that it will wind down Air Canada and Air Canada Rouge operations in a phased manner over the next three days to mitigate the impact of the strike action.
Air Canada Offer
The company has said that it had offered a settlement providing a 38% rise in compensation over four years, with 25% in the first year, seeking no concessions from the union in return. This offer was made on August 11 and has been rejected by CUPE.
It further stated that the problems regarding better pay, pensions and benefits, as well as an increase in rest time for crew, among other improvements, were addressed in the offer.
Talks at an impasse
The talks have hit an impasse, prompting strike action from the union and a subsequent lockout notice from the airline. The airline has refused to accept the union’s counteroffer, seeking “exorbitant increases.” CUPE has rejected the offer of third-party arbitration, leading the airline to seek government intervention.
Arielle Meloul-Wechsler, Executive Vice President, Chief Human Resources Officer and Public Affairs at Air Canada, 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.”
The airline executive further added:
“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.”
Wesley Lesosky, president of the Air Canada Component of CUPE, talking about the airline’s latest proposal, said:
“With respect to Air Canada’s latest offer: it is below inflation, below market value, below minimum wage – and still leaves flight attendants unpaid for all hours of work.”
Lesosky further added:
“Currently, Air Canada flight attendants perform hours of critical safety-related duties for free. 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.”
He further stated that the members’ vote is representative of the flight attendants’ “deep frustration “ regarding months of negotiations proving to be futile, as the airline refuses their offer. Talking about arbitration, the union member has stated that the union has refused a third-party arbitration offer due to its potential to “preserve the status quo” regarding unpaid work, which members are trying to take down. Lesosky said:
“The union has declined the company’s proposal to preserve the exploitative status quo and take away our members’ voice.”
Impact on customers
The airline has stated that suspension of operations was a better option in case of the strike action than travel disruptions. The airline will cancel its flights starting August 14, followed by more routes on August 15. Operations of Air Canada and Air Canada Rouge will be completely suspended on August 16
Its services pertaining to its Express service will be performed by Jazz or PAL Airlines per usual. However, these regional flights only account for 20% of the airline’s daily customers. Around 130,000 fliers per day handled by the impacted flights would face disruption.
Fliers facing cancellation due to the strike action would be notified and can seek a refund online or through the airline’s app. It has further said that it has made arrangements with other Canadian and foreign operators for alternative options in terms of travel.
Though it said:
“Given other carriers are already very full due to the summer travel peak, securing such capacity will take time and in many cases will not be immediately possible.”
It is also important to note that passengers in Canada are not eligible for compensation or benefits such as free meals or hotels in certain situations that are out of the airline’s control under the country’s Airline Passenger Protection Regulations. Such situations include a ‘labour disruption’ such as a strike action or a lockout.
The airline said:
“ Air Canada will, in all cases, inform passengers of their rights under applicable rules if their flight is cancelled or delayed and meet its regulatory obligations.”
The airline has advised customers to avoid going to the airport unless they have a confirmation of travel. The airline has also advised fliers to use self-service tools where possible due to longer wait times.
Would you be impacted by the strike action? What are your thoughts on these negotiations? Do share in the comments.
