Air Canada announced a complete suspension of operations following a strike by flight attendants that commenced just after midnight on Saturday. The Canadian Union of Public Employees (CUPE), representing over 10,000 attendants, had issued a 72-hour strike notice when negotiations for better wages and conditions reached a deadlock. The airline reported it would have to cancel up to 500 flights, impacting approximately 100,000 travelers, though Air Canada Express services remained operational.

The airline's operations were disrupted soon after receiving the strike notice, as it began delaying and cancelling hundreds of flights. Mark Nasr, Chief Operations Officer of Air Canada, noted the intricacy of the airline's operational system and warned that a complete stop to flying would occur if issues weren’t resolved.

Flight attendants indicated dissatisfaction with Air Canada's proposal, which included a 38% increase in compensation over four years, noting that it fell below inflation and market standards, effectively translating to a pay cut. The union's overwhelming vote to strike highlighted the seriousness of their position, with 99.7% in favor.

In response, Canada’s Jobs Minister Patty Hajdu invoked Section 107 of the Canada Labour Code, compelling both parties into binding arbitration to facilitate an expedient resolution. The government characterized its actions as necessary to uphold industrial peace and protect Canadians, despite CUPE's accusations of infringing on their rights and the need for true negotiations.

Air Canada's plea for help from the government had been driven by concerns over impending disruptions and potential impact on the economy and ongoing travel. The airline is not only informing passengers of cancellations but also facilitating refunds and providing alternative travel arrangements with other carriers.

While there is uncertainty about the length of the strike, historical precedence signals significant financial and operational implications for Air Canada, as illustrated by their pilots' strike in 1998 which grounded operations for 13 days. The union emphasizes that the focus must remain on genuine negotiation rather than imposed arbitration as they navigate this significant labor conflict.