Air Canada and the Canadian Union of Public Employees (CUPE), representing approximately 10,000 flight attendants, have reached an impasse in contract negotiations. The union rejected the airline's proposal for binding third-party arbitration, seeking a negotiated settlement instead. Air Canada offered a 38% total compensation increase over four years, including a 25% raise in the first year. Following the deadlock, Air Canada has requested federal government intervention and declared a potential shutdown of operations. The flight attendants' union issued a 72-hour strike notice on August 13, with a strike planned to begin on August 16. In response, Air Canada issued a lockout notice and has started canceling flights in anticipation of the work stoppage. Canada’s Jobs Minister, Hajdu, is closely monitoring the situation and confirmed that federal mediators remain available to assist until a deal is reached.