Air Canada (TSX:AC.B) flight attendants are poised to strike on Saturday as months of negotiations between the airline and the Canadian Union of Public Employees (CUPE) have come to an impasse.
CUPE, representing 10,000 flight attendants at Air Canada and Air Canada Rouge, issued a 72-hour strike notice over stalled negotiations on wages, unpaid work, and cost-of-living adjustments.
In response, Air Canada issued a 72-hour lockout notice and plans phased suspensions of most flights starting on Thursday, with a full halt possible by Saturday. Air Canada Express flights are not affected.
On Thursday, Canada’s Jobs Minister Patty Hajdu confirmed she has asked the union representing Air Canada flight attendants to respond to the airline’s request for government-directed arbitration, following CUPE’s rejection of a recent contract offer.
Hajdu called the strike notice and Air Canada’s lockout a “disappointing development” and emphasized efforts to bring both sides to the bargaining table.
The airline’s latest offer included a 38% total compensation increase over four years, pension and crew-rest improvements, and binding arbitration, all rejected by CUPE.
If the strike proceeds as planned, Air Canada and Air Canada Rouge operations could be fully suspended by 1 am Eastern Time on Saturday. Roughly 130,000 passengers daily could face disruptions.
Shares of Air Canada traded hands at C$19.75 on Thursday morning, down 11% in the year to date.