Air Canada flight attendants walk off the job as strike begins

More than 10,000 Air Canada flight attendants went on strike as of 12:58 a.m. ET Saturday, after the airline and the union representing them failed to reach a deal ahead of the deadline.

The Canadian Union of Public Employees, or CUPE, gave a 72-hour strike notice on Wednesday after midnight. Air Canada responded shortly after by saying it would lock out workers, and began winding down operations on Thursday with a gradual suspension of flights.

With a work stoppage now in effect, Air Canada estimates that 130,000 customers will be affected each day of a strike, a figure that includes 25,000 Canadian travellers who are abroad.

The strike began after talks between CUPE and Air Canada reached an impasse, with wages and ground pay — which compensates flight attendants for work while the plane is grounded — among the key sticking points keeping the parties from reaching a deal.

Earlier this week, Air Canada formally proposed to CUPE that the parties use binding arbitration to negotiate the renewal of a 10-year collective agreement that expired in March.

CUPE declined to use arbitration, a process that would have an arbitrator render a decision about specific items the parties can't agree on. CUPE has maintained it wants to stay at the negotiating table and have the two sides come to an agreement themselves.

Air Canada asked federal Jobs Minister Patty Hajdu to make a referral under Section 107 of the Canada Labour Code to send the negotiations to binding interest arbitration. Hajdu gave CUPE until noon on Friday to respond, and they declined.