Aug 13 (Reuters) - Air Canada AC.TO is asking the federal government to intervene in contract talks with its flight attendants union, after the airline declared an impasse in negotiations for a new pay deal.
The strike could hit some of the carrier's most lucrative routes between Canada, the United States, Europe and Asia and would impact nearly 130,000 people daily.
The move reflects a growing trend of companies turning to Ottawa to settle high-stakes labor disputes.
Under Section 107 of the Canada Labour Code, Ottawa can impose binding arbitration in federally regulated sectors if a strike or lockout threatens public safety or the economy, compelling both sides to accept a settlement.
Unions say the move strips them of their power and encourages employers in key sectors to make poor pay offers, knowing the government will intervene in case of stoppages.
Former Liberal Prime Minister Justin Trudeau referred several recent major labor disputes to the independent Canada Industrial Relations Board, which has the power to end stand-offs between unions and employers.
This is the first major dispute under Liberal Prime Minister Mark Carney.
CANADA POST
In December 2024, the CIRB ordered an end to a month-long stoppage by 55,000 workers at Canada Post, the national postal service. The strike was the second in six years.
The terms of the existing contract were extended until May 22, 2025. Talks on a new contract failed, prompting the union to initiate an overtime ban that remains in place.
MAJOR PORTS
In November 2024, Ottawa asked the CIRB to end prolonged work stoppages at Canada's largest ports which the government said was affecting more than C$1.3 billion ($944.63 million) worth of goods every day.
The dispute had already disrupted shipments of canola oil, forest products and other commodities. The arbitration was welcomed by business groups.
CANADIAN NATIONAL RAILWAY & CANADIAN PACIFIC KANSAS CITY
In August 2024, Canadian National Railway CNR.TO and Canadian Pacific Kansas City CP.TO - Canada's two top rail companies - locked out more than 9,300 Teamsters Canada workers after contract talks failed, threatening disruption in a country that depends heavily on rail for freight.
The federal government turned to the CIRB, which within three days directed operations to resume.
WESTJET MAINTENANCE ENGINEERS
In June 2024, Ottawa asked the CIRB to intervene to prevent a strike by maintenance engineers at WestJet Airlines, the country's second-largest carrier, to avoid major flight cancellations ahead of a busy holiday weekend.
($1 = 1.3762 Canadian dollars)