Air Canada could be forced to effectively shut down on August 16 after the Montreal-based carrier walked away from negotiations with flight attendants who are demanding big pay raises to keep up with rising inflation.
On Tuesday, the airline announced that it had declared an impasse with the CUPE union, which represents more than 10,000 flight attendants at the Canadian flag carrier.
The result is that either party can now issue a 72-hour notice period from August 13. In the case of the flight attendant union, this would be a strike notice, whereas Air Canada also has the power to issue a lockout notice.
In any case, the airline would likely have to shut down on August 16 until the dispute was resolved.
Yesterday, the two sides met for last-ditch talks in an attempt to avert a shutdown, but the union rejected Air Canada’s final offer, claiming what the airline had tabled was, in essence, a pay cut in real terms.
A war of words has now erupted between the union and the airline, with claims and counterclaims coming thick and fast.
What Air Canada Claims:
1. Air Canada says it offered flight attendants a 38% pay increase over the four-year term of the proposed contract.
2. The airline has agreed to offer ground pay for flight attendants to address an issue in which crew members were working for free.
3. The flight attendant union refused to negotiate with Air Canada while it sought a strike mandate from its members, wasting 10 valuable days of potential bargaining.
4. Air Canada proposed going to binding third-party arbitration to “protect the interests” of both parties.
5. The airline accuses the union of seeking”exorbitant” pay increases. increases.
The Union’s Counter Claims:
1. In real terms, the pay increase is only 17% over the term of the contract, and only 8% in the first year – meanwhile, flight attendants have taken a 9% cut to their real wages due to inflation.
2. While Air Canada has finally offered to pay flight attendants for boarding, this would only be at 50% of the normal hourly rate and would not be paid for medical emergencies, fires, evacuations, and other safety and security-related issues on the ground.
3. The union says it was always available to negotiate, but the airline never reached out to continue bargaining while it was holding a strike vote.
4. Arbitrators rely on precedent and maintaining the status quo, the union claims. This was acceptable to the union as they want to “break the status quo.”
5. The union says the pay rises it is asking for are “fair” and well within what Air Canada can afford.
Air Canada Slams The Union
Arielle Meloul-Wechsler, Air Canada’s EVP of Human Resources hit out at the CUPE, saying:
“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.”
Arielle says the airline is now appealing to the Canadian government to step in and force the two sides into binding arbitration.
The Union Responds to Arbitration Threat
Wesley Lesosky represents the Air Canada division of the CUPE and says the airline wants arbitration because it would allow someone else to do their “dirty work” for them.
“Everyone knows the best deals are negotiated at the bargaining table, not handed down by an outside third-party. Then why does Air Canada want the union to agree to arbitration?” Lesosky commented.
“First, arbitrators rely on precedent and the status quo to make their determinations. But Air Canada flight attendants are trying to break the status quo by ending the historic abuse of unpaid work in this industry. Air Canada wants an arbitrator to do their dirty work for them to keep the status quo intact.”
What Does This Mean For Passengers?
There’s still a lot of uncertainty over whether Air Canada will really have to shut down on August 16, and there’s still time for the two sides to hammer out a deal. That being said, the airline says it has now started preparations for mass flight cancellations.
The problem facing Air Canada is that it doesn’t want to be left in a situation where negotiations fail at the last minute, and it is forced to initiate an unplanned shutdown.
That means in the coming days, the airline could start proactively cancelling flights, even as negotiations continue. Air Canada says it has already made arrangements with other Canadian and foreign airlines to transfer affected passengers onto their flights.
Are Passengers Eligible For Compensation If Their Flight Is Cancelled?
The simple answer is no. Air Canada says passengers aren’t entitled to compensation if their flight is cancelled or delayed as a result of a shutdown stemming from this labor dispute.
Passengers wouldn’t even be entitled to meals, hotels, or other incidental expenses. This is the case whether the shutdown is the result of a strike or a lockout initiated by Air Canada.
You may want to elaborate on the fact that the flight attendants are part of the Canadian Union of Public Employees (CUPE), the largest union of its kind in Canada, representing all kinds of public employees. So the stakes are much higher for Air Canada.