TORONTO- Air Canada (AC) issued a 72-hour lockout notice to the Canadian Union of Public Employees (CUPE) after the union announced a potential strike by 10,000 flight attendants at Air Canada and Air Canada Rouge.
The airline plans a phased shutdown of operations over three days to minimize chaos and has requested government arbitration to resolve the impasse.

Air Canada 72 Hour Lockout
Air Canada (AC) announced its decision to initiate a lockout in response to CUPE’s 72-hour strike notice. The dispute affects flight attendants at both Air Canada and Air Canada Rouge, who collectively serve approximately 130,000 daily passengers.
This includes approximately 25,000 Canadians flown home from abroad each day, many of whom could be stranded if operations were to halt.
Negotiations began eight months ago with the assistance of federal conciliation. On August 11, Air Canada tabled a revised proposal offering a 38% total compensation increase over four years, improved pensions, ground pay, crew rest, and other benefits.
The proposal required no concessions from CUPE members. Despite this, CUPE rejected both the offer and the airline’s proposal for binding arbitration, prompting Air Canada to seek immediate government intervention under Section 107 of the Canada Labour Code.

Arbitration Request
Air Canada argues that binding arbitration is the only viable path to resolution, citing recent federal interventions in other transportation labour disputes as precedent.
The airline stresses that industrial peace is the purpose of the Canada Labour Code when bargaining reaches an impasse after good faith negotiations.
According to Air Canada, continued deadlock would harm travellers, the broader economy, and other stakeholders.
The company remains open to renewed talks or arbitration, but insists that uncertainty caused by an unmanaged strike would create severe operational and customer service issues.

Impact on Flight Operations
Air Canada initiated the lockout to enable a controlled wind-down, starting with flight cancellations on August 14, escalating on August 15, and fully halting Air Canada (AC) and Air Canada Rouge (RV) operations by August 16.
This approach aims to notify customers early, reduce stranding risks, and facilitate alternative arrangements. Unmanaged strikes, as seen in other airlines, often cause greater chaos than planned suspensions.
Air Canada Express flights by Jazz Aviation (QK) and PAL Airlines continue normally, serving about 20 percent of daily passengers.
However, the disruption affects roughly 130,000 daily customers on Air Canada and Air Canada Rouge, including 25,000 Canadians returning from abroad who risk being stranded.
The airline operates 259 aircraft to 65 countries across six continents, and a structured shutdown allows proper aircraft positioning, maintenance, and faster service resumption.
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