Air Canada asks for binding arbitration as imminent shutdown looms


Canada’s jobs minister has asked the union representing Air Canada‘s flight attendants to respond to the airline’s request for her to send the two parties to binding arbitration.
“Air Canada submitted a request that I make a referral under Section 107 of the Canada Labour Code to send the parties to binding arbitration,” Patty Hajdu wrote in a letter posted on X on Thursday morning.
“I have asked the union to respond to the employer’s request.”
Hajdu, in her post, said she’s met with both parties throughout the bargaining process and urged them to come to an agreement at the bargaining table.
She also called the decision by CUPE to issue a strike notice and Air Canada giving notice of a lockout a “disappointing development” for Canadians.
Air Canada said in a news release on Wednesday that it had proposed arbitration to the union on Monday to “assist in addressing outstanding issues,” but the union rejected the offer.

Following that, the airline said it made the request to the government for binding arbitration.
“The airline believes recent government interventions in rail, port and airline labour disruptions in Canada provide a proven precedent,” the news release says.

Asked about Hajdu’s request, CUPE said in an email that it would have more to say later but added that the company has been “absent from the bargaining table for nearly a full day.”
The union said it had tabled its most recent proposal to Air Canada at 9 p.m. eastern on Tuesday, hours before both strike and lockout notices were issued.
“The union has been at the bargaining table ever since, waiting for Air Canada to issue their counter-offer,” the union wrote in a press release. “The airline has yet to respond.”
Hajdu’s request Thursday comes as Air Canada has begun to cancel flights in preparation for the potential job action and lockout.
The airline says it will begin cancelling flights Thursday, with more disruptions on Friday.
A complete stoppage is expected on Air Canada mainline and Rouge flights by Saturday if a last-minute deal isn’t reached.
Air Canada has said customers whose flights are cancelled will be notified and they’ll be eligible for a full refund, which can be obtained online or by its mobile app.
More to come
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