Air Canada said Tuesday that negotiations with the union representing its flight attendants have reached an “impasse,” hours before notice of a strike or lockout could be issued.
The update on the critical labour discussions came after as a group representing the tourism industry warns a strike would be “devastating.”
The airline said the Canadian Union of Public Employees’ (CUPE) Air Canada component submitted a counteroffer that seeks “unsustainable” and “exorbitant” increases to compensation, and also rejected an offer by the company to enter arbitration with a third party.
“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,” a statement from the airline said.
“We are now at an impasse in talks, with the union in a position to issue a strike notice at midnight tonight, creating tremendous uncertainty for hundreds of thousands of travellers and companies shipping critical, time-sensitive goods.”
The airline said it is now looking at all remaining options, “including a request for government-directed arbitration,” to prevent a service disruption.
More than 10,000 Air Canada flight attendants are poised for a potential strike that could begin as soon as midnight Saturday, which marks the end of the cooling-off period.
For flight attendants to walk off the job or Air Canada to order a work stoppage at that time, a 72-hour strike or lockout notice would have to be given by midnight on Wednesday.
CUPE says over 99 per cent of Air Canada flight attendants who cast ballots last week voted to strike, adding that the vote result reflects its members’ “deep frustration” after months of stalled negotiations toward a new contract.
“Air Canada wants to go to arbitration because they want to take away our members’ democratic voice,” union president Wesley Lesosky said in a statement Tuesday, noting an arbiter’s determination would be final and not put to a union vote.
“The Air Canada Component of CUPE remains at the bargaining table, ready to negotiate.”
Tourism industry warns of 'devastating impact' of strike
The Tourism Industry Association of Canada (TIAC) is warning that a strike or lockout during peak travel in August and into the Labour Day long weekend could significantly impact Canada’s tourism economy.
“The potential for widespread travel disruption, exacerbated by existing labour shortages and rising travel costs, would have a devastating impact on tourism businesses and the livelihoods they support across Canada,” TIAC said in a statement.
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The group urged both sides to “reach a resolution that safeguards our industry’s momentum and Canada’s reputation as a world-class destination.”
However, it added that if the two sides are unable to reach a settlement, the federal government should “step in to avoid massive disruption and protect the travelling public and our industry writ large.”
Air Canada says it serves about 130,000 customers daily through its mainline Air Canada and Air Canada Rouge flights who could face a disruption from a strike, including 25,000 Canadians seeking to return home from abroad “who could be stranded.”
On Monday, Air Canada flight attendants held a “day of action” outside some of Canada’s major airports.
Dozens of flight attendants for both mainline Air Canada and Air Canada Rouge stood outside Pierre Elliott Trudeau International Airport in Montreal, Toronto Pearson International Airport, Vancouver International Airport and Calgary International Airport for about an hour to highlight their major issues with the airline.
When can the union strike?
The cooling-off period between CUPE and Air Canada began on July 26, with the strike vote commencing two days later. During this period, the labour minister can appoint a mediator to continue to assist the parties in reaching an agreement.
However, a union can choose to strike or an employer can choose to lock employees out if certain conditions are met. A strike vote needs to be taken and both parties need to give 72 hours’ notice before either a strike or a lockout.
Now with a strike mandate in hand, the union could be in a legal strike position as soon as Aug. 16 at 12:01 a.m. eastern, CUPE said in its statement.
That means the earliest a strike notice can be issued is 12:01 a.m. eastern on Aug. 13, according to Air Canada.
A spokesperson for the union told Global News that “the goal is not to go on strike” and that union negotiators will be back at the table with Air Canada starting Aug. 15.
What are some sticking points?
Air Canada said Tuesday its latest offer includes a 38 per cent increase in total compensation over four years and addresses the union’s issues around “ground pay,” or duties performed on the ground between flights, which CUPE says has been unpaid.
However, CUPE said the airline’s latest offer is “below inflation, below market value, below minimum wage — and still leaves flight attendants unpaid for all hours of work.”
The union said flight attendants at Air Canada are often expected to perform “unpaid labour,” adding that there is a gendered element to this system since the majority of flight attendants are women.
Air Canada flight attendants are not paid for duties they perform before and after flights, including critical safety checks, boarding and deplaning procedures, assisting passengers with special needs and preparing the cabin, the union said.
“This practice persists because flight attendants’ compensation is based on ‘block time’ (takeoff to landing), not from when the employee begins work. Unlike most workers, flight attendants are not paid when they report for duty, even though they are expected to be in uniform, on-site, and performing job-related duties, including critical safety-related duties mandated by Transport Canada,” the union said in a statement.
Air Canada said time spent on onboarding and performing other on-ground tasks is covered under the current collective bargaining agreement, which covers ‘Duty Period.’
This begins one hour before flight departures and ends 15 minutes after flight arrival.
“If the employee is requested to be on duty outside of these times or to perform service to passengers on the ground, the collective agreement provides for additional compensation,” Air Canada said in a statement.
Every month, cabin crew at Air Canada are guaranteed a minimum pay ranging between 65 and 80 credit hours, whether they work these hours or not, Air Canada said.
An Air Canada Rouge flight attendant is guaranteed a minimum of 75 to 80 credit hours per month, it added. CUPE also says its members have been earning “poverty wages” as cabin crew at Air Canada, arguing their wages have grown 10 per cent since the year 2000 and have not kept up with inflation.
“A full-time worker earning federal minimum wage earns approximately $36,000/year; due to their low hourly rates and the volume of mandatory unpaid work, a full-time entry-level Air Canada flight attendant earns less than minimum wage — just $27,000/year before taxes,” the union said in a statement.
The hourly pay is $41.39 for a Rouge flight attendant with five years of service, $63.07 for a mainline flight attendant with 10 years of service, and up to $87.01 for a service director, Air Canada said.
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