Air Canada pulls profit forecasts as striking flight attendants defy return-to-work order
The airline estimates about 500,000 customers’ flights have been canceled as flight attendants continue to strike
ANDREJ IVANOV/AFP via Getty Images
Air Canada is yanking its profit forecasts as flight attendants continue a strike declared “unlawful” and ignore return-to-work order.
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The Canadian airline announced Monday that it's pulling its third-quarter and full-year guidance due to its continued suspended operations.
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The Canada Industrial Relations Board ordered the 10,000 striking Air Canada flight attendants to return to work on Sunday. The board declared the strike unlawful after it said the Canadian Union of Public Employees, the union representing the striking flight attendants, won’t comply with the order to direct its members back to work.
On Monday, the CIRB told CUPE it must publicly direct members to go back to work and end their strike by noon. As of the time of this report, CUPE had not made a public statement.
The union did not immediately respond to Quartz's request for comment.
Air Canada said in estimates that about 500,000 customers’ flights have been canceled due to the strike. The airline had planned to restart operations on Sunday but was unable to due to the union’s continued strike.
The airline began canceling flights on Thursday after CUPE sent a 72-hour notice to strike on Wednesday. Air Canada responded by issuing a 72-hour lock out notice.
In its notice to strike, CUPE said Air Canada “ceased to engage in meaningful dialogue,” which it said left the union no choice but to strike, acknowledging the impact this move will have on the “long-anticipated vacations of the public.”
“We do not take this lightly,” it said.
CUPE and Air Canada had been in negotiations for eight months, even at one point bringing in federal conciliators to help with negotiations. Last Monday, the airline tabled a revised proposal to CUPE that it said “sought no concessions in return from its Flight Attendants” and included a 38% total compensation increase over four years. It said it had offered the union to enter “third-party, binding arbitration” in order to finalize any outstanding issues.
CUPE said Air Canada “refus[ed] to address critical issues,” including unpaid labor and wages.
The airline had requested government-directed arbitration.
Air Canada’s stock dropped about 1% Monday.