Air Canada suspends operations as flight attendants go on strike

[Air Canada Boeing 787 departing Vancouver International Airport]
Alvin Man/iStock Editorial via Getty Images

Air Canada (OTCQX:ACDVF [https://seekingalpha.com/symbol/ACDVF]) and its low-cost affiliate Air Canada Rouge on Saturday suspended all operations after its unionized flight attendants went on strike, impacting nearly 700 flights operated by Canada's largest carrier.

“We are now officially on strike,” the Canadian Union of Public Employees (CUPE), which represents the striking flight attendants, said in a statement as the trade union action took effect at 12:58 am ET.

After CUPE issued a 72-hour strike notice on Aug. 13, Air Canada (OTCQX:ACDVF [https://seekingalpha.com/symbol/ACDVF]) has been gradually phasing out its operations ahead of the walkout, which it said could impact about 130,000 of its passengers.

On Saturday, the company, the foreign carrier with the highest number of flights to the U.S., began a lockout action against striking employees at 1:30 am ET.

The flight attendants walked off the jobs after CUPE and Air Canada failed to reach an agreement over wage increases and payments for uncompensated groundwork, including the boarding process.

“At this time, Air Canada remains engaged and committed to negotiating a renewal to its collective agreement with CUPE,” the Montreal-based carrier said, adding it “deeply regrets the effect the strike is having on customers.” [https://seekingalpha.com/pr/20203048-air-canada-and-air-canada-rouge-action-lockout-of-flight-attendants-in-response-to-cupe#source=section%3APress%20Releases%7Csection_asset%3APress%20Releases%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A1]

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