Air Canada has suspended its third-quarter and full-year profit forecasts after striking flight attendants refused a government-backed order to return to work, grounding hundreds of planes and leaving travelers stranded.
The Canadian Union of Public Employees (CUPE), which represents 10,000 cabin crew, rejected a labor board directive for binding arbitration, calling the back-to-work order unconstitutional. The union is demanding higher wages and pay for ground duties, such as boarding passengers, which attendants are not currently compensated for, News.Az reports, citing Reuters.
Air Canada, a member of the Star Alliance, typically carries about 130,000 passengers daily. The airline said it would delay plans to restart operations until Monday evening and accused the union of “illegally defying” the order.
The standoff has created a rare clash with the Canadian government, which is weighing options including seeking court enforcement of the order, an expedited hearing, or introducing legislation to end the strike. Legal experts caution, however, that Canadian courts are reluctant to strip workers of their right to strike.
Prime Minister Mark Carney’s government had sought to resolve the dispute through the Canada Industrial Relations Board, but CUPE insists only direct negotiations can deliver a fair settlement.
Travelers at major airports including Toronto and Vancouver have expressed confusion and frustration as the strike stretches on with no resolution in sight.
