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Air Canada pursues binding arbitration to avert impending closure

Air Canada requested Jobs Minister Patty Hajdu to mediate a binding arbitration between them and the union, with Hajdu now urging the union to address the airline's proposal.

Impending Air Canada Shutdown Sparks Request for Binding Arbitration
Impending Air Canada Shutdown Sparks Request for Binding Arbitration

Air Canada Flight Attendant Strike: Preemptive Flight Cancellations and Negotiations Update

Air Canada pursues binding arbitration to avert impending closure

The ongoing labor dispute between Air Canada and its flight attendants, represented by the Canadian Union of Public Employees (CUPE), has led to preemptive flight cancellations by the airline. As of August 16, Air Canada's mainline and Rouge flights are grounded, affecting approximately 130,000 customers daily, and about 25,000 Canadians who are usually brought home from abroad risk being stranded.

The decision to cancel flights ahead of the potential strike or lockout was made to manage disruptions proactively, with the aim of controlling the narrative, informing customers well in advance, and facilitating an orderly restart of operations once the dispute is resolved.

Negotiations and Arbitration Requests

Both Air Canada and the union have been engaged in negotiations, with the union presenting an offer on Tuesday evening that is still awaiting a response from Air Canada. However, Air Canada has requested Canada's jobs minister to send the union representing its flight attendants to binding arbitration. The union, CUPE Air Canada Flight attendants, has agreed to respond to this request by midday Friday, August 15.

Air Canada's executive vice-president and chief operations officer, Mark Nasr, expects about 500 flights to be cancelled by end of day Friday. The airline is attempting to rebook customers on more than 120 other airlines, including its competitors, to minimize the impact of the cancellations.

Responses from Other Airlines

Global News reached out to Porter Airlines, WestJet, Flair, and Air Transat to inquire about their responses to the looming strike. Porter Airlines has seen an increase in "close-in bookings" but is operating on a full schedule to give travellers options. It has passenger protection agreements with several airlines whose passengers are experiencing travel disruptions. Air Transat will accommodate passengers subject to availability due to Air Canada's contact regarding "re-protection" of some travellers through the two companies' irregular operations agreement.

Flair and WestJet are monitoring demand trends and exploring opportunities to support Canadians in situations with an "uncontrollable impact". Patty Hajdu, Canada's jobs minister, has affirmed that deals made at the bargaining table are the best ones and urged both sides to reach an agreement.

Customer Support and Refunds

For those unable to be accommodated, customers will have the option to receive a full refund of their ticket or rebook their travel for a later date without a fee. Customers whose flights are cancelled will be notified and will be eligible for a full refund.

Both Air Canada and the union have called on the other side to continue negotiations to avoid a strike or lockout that could begin on Saturday. Canada's jobs minister's press secretary, Jennifer Kozelj, has reiterated the government's preference for a negotiated agreement.

As the situation develops, it is essential for customers to stay informed and adjust their travel plans accordingly. The airline industry encourages travellers to check their flight status regularly and to plan for potential disruptions.

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