Air Canada announced a complete suspension of its operations Saturday morning as over 10,000 flight attendants commenced a strike following a failed contract negotiation. The federal government quickly intervened to facilitate discussions between the airline and the attendants' union, the Canadian Union of Public Employees (CUPE), as the labor dispute escalated.

This strike, first signaled with a 72-hour notice, arose after both parties could not find common ground regarding wages and unpaid labor. The union argues Air Canada's compensation offer is inadequate in light of inflation, and as a result, they opted for strike action shortly after midnight. In response, the airline began cancellations, anticipating up to 500 flight disruptions affecting nearly 100,000 travelers.

Air Canada, which operates flights in 64 countries with a fleet of 259 aircraft, is particularly concerned about operational complexities. The carrier is attempting to maintain service for its Air Canada Express flights that cater to about 20% of its passenger load, yet a total shutdown could impact 130,000 daily customers.

The union’s discontent stems from the perception that the company's offer of a 38% wage increase over four years fails to match the current economic climate, classifying it as "below inflation." In a historic move, 99.7% of attendants voted in favor of strike action earlier this month.

As negotiations faltered, Labour Minister Patty Hajdu invoked Section 107 of the Canada Labour Code to enforce binding arbitration. This directive aims to restore order and limit economic disruption. However, CUPE has voiced strong opposition to government intervention, claiming it undermines their rights and hinders genuine negotiations.

Air Canada pilots’ previous strike in 1998 lasted 13 days, reminding the public of the potential fallout from extended labor disputes. The timeline for the current strike remains uncertain, but it marks the first time flight attendants have walked out since 1985.

In the meantime, Air Canada is advising passengers to check their flight status before heading to the airport and is offering full refunds for affected travelers. The airline has also coordinated with other carriers to assist customers stranded by the cancellations.

As the strike continues, the importance of resolving the labor dispute quickly is underscored by the looming impact on Canada's travel industry, especially during the peak summer season.