Air Canada Strike Resolution: Union Triumphs in Historic Agreement

Air Canada's unionized flight attendants finalized a tentative deal with the major airline carrier, concluding a historic strike that had lasted nearly four days. The labor action, the first of its kind in 40 years, disrupted the travel plans of hundreds of thousands of passengers and forced the airline to withdraw its earnings guidance for the third quarter.

The strike resulted in a 4% rise in Air Canada's share price, although the stock remains down by 14% this year. The airline is now planning a gradual resumption of operations, which should stabilize within a week, while the union reported completing mediation with Air Canada and its low-cost subsidiary, Air Canada Rouge.

The union, representing 10,400 flight attendants, insisted on pay for previously unpaid ground tasks, such as boarding. The ongoing labor movement comes amidst broader sectoral pushes for improved pay and benefits. This labor dispute caught the attention of the Canadian government, with Jobs Minister Patty Hajdu urging mediation and exploring allegations of unpaid work.

(With inputs from agencies.)