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Air Canada cabin crew on strike, forcing hundreds of flights to be grounded

Air Canada's flight attendants, who are unionized, walked out of their jobs early Saturday morning as contract negotiations with the country's biggest carrier failed. This could cause travel disruptions for over 100,000 passengers.

In a post on social media, the union that represents more than 10,000 Air Canada Flight Attendants confirmed the strike in an early morning posting.

Currently, flight attendants are only paid for the time they spend on the plane. The union wanted to compensate them for the time spent waiting at the airport and helping passengers board.

Air Canada, based in Montreal, said that it expected to cancel 500 flights by Friday's end during the busy summer travel period. Around 100,000 people were expected to be affected by the cancellations on Friday.

As the airline gradually winds down its operations, flight attendants will likely picket major Canadian airports on Saturday, where passengers had already tried to secure new bookings in the previous week.

Freddy Ramos (24), a passenger at Canada's biggest airport, Toronto, said that Air Canada had rebooked him to another destination after his flight earlier in the day was cancelled because of a labor dispute.

He said that "probably 10 minutes before boarding our gate was changed, then cancelled, then delayed, and then again cancelled."

Air Canada Rouge, its low-cost subsidiary, carries about 130,000 passengers per day. Air Canada has the most flights into the United States of any foreign carrier.

Canadian businesses, reeling from an ongoing trade dispute with the United States, have urged the government to enforce binding arbitration for both sides. This would put an end to the strike.

Air Canada asked the minority Liberal Government of Prime Minister Mark Carney, to order both parties into binding arbitration, despite the Canadian Union of Public Employees (which represents the attendants) saying it was against the move.

According to the Canada Labour Code, the Jobs Minister Patty Hajdu has the right to request that the Industrial Relations Board of Canada impose a binding arbitration to protect the economy.

Hajdu has repeatedly called on the two sides to come back to the table.

Air Canada has offered to compensate flight attendants at half their current hourly rate for work they are currently not paid.

The carrier offered flight attendants a 38% total increase in compensation over four years with a 25% rise in the first year. However, the union deemed this offer insufficient.

Analysts at financial services company TD Cowen urged on Friday that the carrier "extend an olive branch in order to end this impasse" and that investors were concerned that any labor cost savings would be outweighed by the loss of earnings during the airline's crucial quarter.

The note stated that "We believe it is best for AC to reach labor peace." Not compromising on negotiations could be a Pyrrhic win.

(source: Reuters)