Picketers at Vancouver International Airport in Richmond, B.C., on Sunday. The Canadian Industrial Relations Board said in a decision issued on Monday morning the Canadian Union of Public Employees’ defiance of a back-to-work order on Sunday is “unlawful.”ETHAN CAIRNS/The Canadian Press
Canada’s labour relations board has declared illegal the strike by Air Canada’s AC-T 10,000 flight attendants.
The Canadian Industrial Relations Board said in a decision issued on Monday morning the Canadian Union of Public Employees’ defiance of a back-to-work order on Sunday is “unlawful.”
The decision orders the union leaders to send their members back to work by noon on Monday, and also directs the members themselves to return to their duties.
“The members of the union’s bargaining unit are directed to resume the performance of their duties immediately and to refrain from engaging in unlawful strike activities,” reads the directive, signed by Jennifer Webster, vice-chairperson of the CIRB.
The union representing Air Canada flight attendants says it intends to remain on strike in defiance of a back-to-work order from the Canadian Industrial Relations Board. The challenge to the order to return to work by Sunday 2 p.m. ET came only hours after the airline had announced plans to resume flights.
The Canadian Press
The order was issued in response to an application by Air Canada.
The airline on Monday morning suspended its financial guidance for the third quarter and full year, citing the strike and suspension of all flights.
Prime Minister Mark Carney told reporters in Ottawa on Monday it is “disappointing” negotiations have not yielded a new labour contract.
The dispute has disrupted travel plans of hundreds of thousands of Canadians and visitors, he said, urging both sides to reach an agreement as soon as possible.
“We recognize very much the critical role that flight attendants play in keeping Canadians and their families safe as they travel, comfortable as they travel,” Mr. Carney said. “And it’s important that they’re compensated equitably at all times, fairly at all times.”
The flight attendants walked off the job early on Saturday morning, halting about 700 flights a day and grounding Canada’s largest airline.
Airlines work to add flights, make schedule adjustments in face of Air Canada labour dispute
Labour Minister Patty Hajdu on Saturday used Section 107 of the Canada Labour Code to order an end to the stoppage and directed the CIRB to arbitrate a resolution to the impasse at the bargaining table.
The union defied the order and the airline cancelled plans to resume some flights on Sunday.
Air Canada has said it will resume operations on Monday evening, but it is not clear how that will happen.
The airline said in a statement on Monday it is committed to resuming service “as soon as possible.” About 500,000 customers’ flights have been cancelled in the strike, Air Canada said.
CUPE officials did not immediately respond to interview requests.
Air Canada and the union negotiators are unable to agree on wages.
The airline has offered a pay increase of 17.2 per cent over four years. The union says this does not account for inflation over the past decade, and says its members must be fairly compensated for work they do before a plane takes off.
James McGarragle, a stock analyst at Royal Bank of Canada, said the strike is costing the airline $61-milion a day in lost revenue. This is putting pressure on Air Canada in what is typically its most profitable quarter. Mr. McGarragle, in a note to clients, estimates the strike will reduce the airline’s profit before taxes and other expenses by $300-million a week.
Before suspending its financial guidance on Monday, Air Canada said its full-year profit, reported as adjusted earnings before interest, taxes, depreciation and amortization, would be between $3.2-billion and $3.6-billion.
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