Canadian government orders arbitration to resolve major Air Canada flight attendants' strike
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Air Canada suspended all operations Saturday morning after more than 10,000 flight attendants walked off the job over pay and scheduling disputes, prompting the Canadian government to step in.

Jobs and Families Minister Patty Hajdu has directed the Canada Industrial Relations Board to impose binding arbitration, extending the existing contract until a new agreement is reached.

“This decision will help make sure that hundreds of thousands of Canadians and visitors to our country are not impacted because of canceled flights,” Hajdu said in a statement Saturday afternoon.

The strike has already upended travel plans worldwide at the height of the summer season.

The airline, Canada’s largest and the country’s flag carrier, estimates that with its roughly 700 daily flights suspended, some 130,000 customers will be impacted each day the walkout continues.

Hajdu warned the strike could severely impact the Canadian economy, noting that Air Canada transports more than 40% of the country’s critical goods, including pharmaceuticals and organ tissue.

It’s unclear how long the strike will last or when a deal might be reached. Air Canada Chief Operating Officer Mark Nasr cautioned that even after an agreement, it could take up to a week to fully restart operations.

Air Canada is urging affected customers not to go to the airport unless they have a confirmed ticket on an airline other than Air Canada or Air Canada Rouge. Flights operated by Air Canada Express partners Jazz and PAL airlines are not impacted.

Passengers whose flights are canceled will be notified. Here’s what travelers need to know:

Request a refund or credit

Customers who booked an Air Canada flight on or before Aug. 15 for travel on Saturday or Sunday can cancel for a full refund of the unused portion of their ticket, regardless of fare type, through the company’s website or mobile app.

Travelers may also opt for a travel credit to use toward a future Air Canada booking.

For other travel dates, refundable ticket holders can request a full refund with no fees. Nonrefundable fares can be converted into credit for future travel.

Air Canada can rebook your flight

If you forgo a refund, Air Canada said it will attempt to rebook you, including with other carriers.

But the airline — which serves more than 180 airports in Canada, the United States and on six continents — warned that seats are extremely limited during the peak summer season.

“Available capacity on our airline and on other carriers is limited due to the summer travel peak, meaning the possibility of rebooking you within an acceptable timeframe is low,” Air Canada said in a news release on Saturday.

Passengers can also rebook their flights for dates between Aug. 21 and Sept. 12 at no additional cost.

Impact on other airlines

Air Canada is a member of the Star Alliance network, which includes 26 member airlines such as United and Lufthansa. This means travelers on partner airlines operating Air Canada flights could be affected.

United Airlines said in a statement that it is “working with customers to get them to their destinations and have issued a travel waiver to make sure they have the flexibility to manage their travel plans.”

Airport and agency response

The Port Authority of New York and New Jersey said that it is “fully prepared to support travelers and help minimize disruptions.”

“Airport staff will be on-site to assist passengers, and we are working closely with Air Canada and our terminal partners to ensure necessary resources are in place,” the agency said in a statement ahead of the strike.

The Port Authority advised that travelers check their flight status directly with Air Canada before heading to the airport and allow extra time for travel.

The U.S. Department of Transportation did not issue an official statement on Air Canada’s suspended operations and did not immediately return a request for comment.

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