Air Canada has declared an impasse in negotiations with the Canadian Union of Public Employees, just hours before a midnight threshold for a strike or lockout notice impacting 10,000 flight attendants.

The airline warned a strike or lockout could strand thousands of travellers.

In a news release Tuesday afternoon (Aug. 12), Air Canada said it offered a 38 per cent increase in total compensation over four years, including measures to address the issue of ground pay. Air Canada said it believes talks are now at an impasse after the union submitted a counter-offer seeking what the airline called “exorbitant increases, beyond those presented in earlier submissions.”

A strike or lockout could occur as early as Aug. 16 unless the airline and union reach a new tentative agreement.

Air Cana

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