Air Canada’s network remained largely grounded on Sunday after the union representing more than 10,000 flight attendants vowed to continue a strike that started early Saturday, brushing aside a government-backed order to return to work. The walkout, the carrier’s first system-wide cabin-crew strike since 1985, has forced the cancellation of roughly 700 daily flights and disrupted travel for an estimated 100,000 to 130,000 passengers at the height of the summer season. Ottawa intervened less than 12 hours after picket lines formed. Jobs Minister Patty Hajdu directed the Canada Industrial Relations Board to impose binding arbitration and instructed both sides to resume operations by 2 p.m. Eastern Time on Sunday. The board extended the terms of the expired collective agreement until an arbitrator sets a new contract. The Canadian Union of Public Employees, however, called the directive unconstitutional and said members would stay off the job until a "fair deal" is negotiated. In response, Air Canada withdrew plans to restart limited services on Sunday night and now aims to resume operations on Monday evening, warning that schedule normalization could take up to a week. The dispute centres on wages and unpaid duties performed while aircraft are on the ground. Air Canada says its latest proposal would lift total compensation, including pensions and benefits, by 38 % over four years, a package it argues would make its cabin crew the best paid in Canada. The union counters that an initial 8 % raise fails to keep pace with inflation and that the offer ignores compensation for boarding and turnaround time. The flight-attendant standoff is the latest test of the Liberal government’s readiness to curb labour disruptions it deems economically damaging. Should the union persist, officials could ask the courts to enforce the CIRB order or recall Parliament early to legislate a return to work—steps that risk deepening tensions with organised labour ahead of a federal election expected next year.