Meanwhile, Air Canada and its wholly owned subsidiary, Air Canada Rouge, are on the brink of one of the biggest labor disputes in recent memory. If a deal is not made by 1 a.m. on Saturday, the remaining roughly 10,000 flight attendants will strike. To add insult to injury, the airline intends to lock out the flight attendants if an agreement can’t be reached. For union members, the situation deteriorated after negotiations broke down. In retaliation, Air Canada is now initiating government-directed arbitration under Section 107 of the Canada Labour Code.
Photo courtesy Arielle Meloul-Wechsler, Air Canada executive vice-president and chief human resources officer. Last Friday, Air Canada announced that it was offering voluntary arbitration to the union. The union officially rejected this offer earlier this week. The airline’s intransigence has further inflamed the situation with the union that represents the airline’s nearly 7000 flight attendants. Unless an alternative proposal is negotiated by Friday, May 12 at 12 p.m. ET, the union intends to begin the process for strike authorization.
That union, whose national president is CUPE Mark Hancock, is at the bargaining table with Air Canada right now. A spokesperson for the carrier said that reaching a settlement through direct talks is still the more desired result.
“We’re still available for negotiations. We’re still available for consensual arbitration.” – Arielle Meloul-Wechsler
The backdrop of this imbroglio is a history of heavy-handed government intervention in labor disputes. During the previous Trudeau government, Ottawa intervened in labor negotiations with Air Canada pilots. Chiefly, the government intervenes if it seems clear that a negotiated solution is not possible.
Labour experts, including Larry Mishel and Peter Doran, have warned about the precedent that government intervention in these kinds of disputes sets. Barry Eidlin, an associate professor of sociology at McGill University, highlighted that repeated governmental intervention could undermine collective bargaining rights.
“The deals that are made at the bargaining table are the best ones.” – Patty Hajdu
Eidlin further noted that if the government were to signal its non-interference in this dispute, it could compel Air Canada to negotiate earnestly. And we all agreed that the overwhelming economic imperatives would push us toward some kind of solution.
“If the government really did signal that they’re not going to intervene, then that would really force the company’s hand.” – Barry Eidlin
In 2023, then-federal labour minister Seamus O’Regan utilized Section 107 to direct binding arbitration in a strike involving workers at British Columbia ports when negotiations stalled. Labor experts have expressed alarm over a damaging trend. They worry that employers will be encouraged to rely more on government intervention than on engaging in bona fide negotiations.
Larry Savage, a labour relations expert, said he was alarmed at how quickly collective bargaining rights can be eroded. Then, he explained, this tends to be the case when the federal government intervenes at the employers’ invitation.
“When the government swoops in only at the behest of employers, it undermines our entire system of labour relations.” – Larry Savage
As those negotiations continue, both parties are mindful of the disruptions a strike could bring. Looking back on the crisis, Council President Meloul-Wechsler recognized the severity of the situation and said,
“Should that all not materialize, we do have to think about the very serious disruptions that would ensue … We have asked for the government to consider intervening if we get to that point.” – Arielle Meloul-Wechsler
Hancock condemned the focus on government intervention, arguing it weakens the power of workers through their rights and collective bargaining. He promised to do what it takes to make sure any deal struck is in line with the priorities of Air Canada’s flight attendants.
“The company is counting on this government, the Liberal government, Minister Hajdu to come in and save the day,” – Mark Hancock
Alongside this, he proffered a promise to reach a collective agreement on their own terms of their choosing.
“That’s to come in and squash the strike before it happens. I’m here to deliver a loud message … that we’re not going to allow that to happen.” – Mark Hancock
Throughout this tense negotiation process, Patty Hajdu, Canada’s current Labour Minister, has urged both parties to reach an agreement without governmental interference.
“To the parties: I strongly urge you to come to an agreement — do not waste this precious time. Canadians are counting on you.” – Patty Hajdu
The impending deadline adds urgency to the situation on both sides. They need to settle their differences peacefully to avoid a strike that would certainly bring significant disruption to air travel throughout Canada.
