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Government forces Air Canada and flight attendants back to work and into arbitration, after strike strands over 100,000 travelers

Canada’s government forced Air Canada and its striking flight attendants back to work and into arbitration Saturday after a work stoppage stranded more than 100,000 travelers around the world during the peak summer travel season.

Federal Jobs Minister Patty Hajdu said now is not the time to take risks with the economy, noting the unprecedented tariffsthe U.S. has imposed on Canada. The intervention means the 10,000 flight attendants will return to work soon.

The government’s action came less than 12 hours after workers walked off the job.

“The talks broke down. It is clear that the parties are not any closer to resolving some of the key issues that remain and they will need help with the arbitrator,” Hajdu said.

Hajdu said the full resumption of services could take days, noting it is up to the Canada Industrial Relations Board. Meanwhile, Wesley Lesosky, president of the Air Canada Component of the CUPE union, accused the government of violating the flight attendants’ constitutional right to strike — and decried Hajdu for only waiting hours to intervene.

“The Liberal government is rewarding Air Canada’s refusal to negotiate fairly by giving them exactly what they wanted,” Lesosky said.

Air Canada did not immediately have additional comments when reached Saturday afternoon. But Air Canada Chief Operating Officer Mark Nasr previously said it could take up to a week to fully restart operations. It’s likely that travelers will continue to see disruptions in the coming days.

Existing agreement will stay in place through arbitration

The shutdown of Canada’s largest airline early Saturday is impacting about 130,000 people a day, and some 25,000 Canadians may be stranded. Air Canada operates around 700 flights per day.

According to numbers from aviation analytics provider Cirium, Air Canada had canceled a total of 671 flights by Saturday afternoon — following 199 on Friday. And another 96 flights scheduled for Sunday were already suspended.

Hajdu ordered the Canada Industrial Relations Board to extend the term of the existing collective agreement until a new one is determined by the arbitrator.

“Canadians rely on air travel every day, and its importance cannot be understated,” she said.

Union spokesman Hugh Pouliot didn’t immediately know what day workers would return to work. “We’re on the picket lines until further notice,” he said.

The bitter contract fight escalated Friday as the union turned down Air Canada’s prior request to enter into government-directed arbitration, which allows a third-party mediator to decide the terms of a new contract.

‘Such little progress has been made’

Flight attendants walked off the job around 1 a.m. EDT on Saturday. Around the same time, Air Canada said it would begin locking flight attendants out of airports.

Ian Lee, an associate professor at Carleton University’s Sprott School of Business, earlier noted the government repeatedly intervenes in transportation strikes.

“They will intervene to bring the strike to an end. Why? Because it has happened 45 times from 1950 until now,” Lee said. “It is all because of the incredible dependency of Canadians.”

Last year, the government forced the country’s two major railroads into arbitration with their labor union during a work stoppage. The union for the rail workers is suing, arguing the government is removing a union’s leverage in negotiations.

The Business Council of Canada had urged the government to impose binding arbitration in this case, too. And the Canadian Chamber of Commerce welcomed the intervention.

“With valuable cargo grounded and passengers stranded, the government made the right decision to refer the two sides to binding arbitration,” said Matthew Holmes, the executive vice president for the Chamber of Commerce — adding that “close to a million Canadians and international visitors could be impacted” if it takes Air Canada a week to be fully operational again.

Hajdu maintained that her Liberal government is not anti-union, saying it is clear the two sides are at an impasse.

Travelers in limbo

Passengers whose flights are impacted will be eligible to request a full refund on the airline’s website or mobile app, according to Air Canada.

The airline said it would also offer alternative travel options through other Canadian and foreign airlines when possible. Still, it warned that it could not guarantee immediate rebooking because flights on other airlines are already full “due to the summer travel peak.”

Many travelers expressed frustration over Air Canada’s response to the strike.

Jean‐Nicolas Reyt, 42, said he had heard little from Air Canada just hours before his upcoming flight from France scheduled for Sunday.

“What’s stressful is to not hear anything from Air Canada,” said Reyt, who is trying to return to Montreal, where he is an associate professor of organizational behavior at McGill University. He said he only received one email from the airline on Thursday warning of potential strike disruptions, but had no further information as of Saturday evening in Cannes, where he was visiting family.

Reyt assumes his upcoming flight could be canceled — much like the scores of other lengthy disruptions this weekend. “I’m just very surprised that Air Canada let it go this far,” he said. “It’s really a bit disheartening that they fly you somewhere abroad and then they just don’t fly you back.”

Jennifer MacDonald, of Halifax, Nova Scotia, expressed similar frustration. She has been trying to help her brother and cousin get home to Edmonton, Alberta since the second leg of their Air Canada trip was canceled during what was supposed to be a 1-hour layover in Montreal on Friday night.

The two had to pay $300 out of their own pocket for a hotel, MacDonald said. All Saturday morning, they tried to look for rebooking options, but everything was sold out, she added. Eventually, they opted to book a new flight for Aug. 22 out of Halifax, with another family member volunteering to make an eight-hour drive to pick them up in Montreal and bring them back east on Saturday.

“It will be a multiday ordeal and a multi thousand dollar trip,” MacDonald said. But as stressful as the disruptions have been, she added that her family stands in solidarity with the flight attendants. “We hope that Air Canada lifts the lockout and negotiates fairly.”

Following the news of the Canadian government forcing arbitration on Saturday, Reyt also expressed concern for Air Canada’s flight attendants. “I think the flight attendants are making some reasonable arguments,” he said, adding that he hopes the intervention isn’t “a way just to silence them.”

Sides are far apart on pay

Air Canada and the Canadian Union of Public Employees have been in contract talks for about eight months, but they have yet to reach a tentative deal.

Both sides say they remain far apart on the issue of pay and the unpaid work flight attendants do when planes aren’t in the air.

“We are heartbroken for our passengers. Nobody wants to see Canadians stranded or anxious about their travel plans but we cannot work for free,” Natasha Stea, an Air Canada flight attendant and local union president, said before the government intervention was announced.

The attendants are about 70% women. Stea said Air Canada pilots, who are male dominated, received a significant raise last year and questioned whether they are getting fair treatment.

The airline’s latest offer included a 38% increase in total compensation, including benefits and pensions over four years, that it said “would have made our flight attendants the best compensated in Canada.”

But the union pushed back, saying the proposed 8% raise in the first year didn’t go far enough because of inflation.

This story was originally featured on Fortune.com

© Arlyn McAdorey—Bloomberg via Getty Images

Air Canada flight attendants and supporters during a strike at Toronto Pearson International Airport in Mississauga, Ontario, Canada, on Saturday.
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AOL shuts down dial-up internet service you probably didn’t know it was still offering

AOL’s dial-up internet is finally taking its last bow.

Yes, while perhaps a dinosaur by today’s digital standards, dial-up is still around. But AOL says it’s officially pulling the plug for its service on Sept. 30.

“AOL routinely evaluates its products and services and has decided to discontinue Dial-up Internet,” AOL wrote in a brief update on its support site — noting that dial-up and associated software “optimized for older operating systems” will soon be unavailable on AOL plans.

AOL, formerly America Online, introduced many households to the world wide web for the first time when its dial-up service launched decades ago, rising to prominence particularly in the 90s and early 2000s.

The creaky door to the internet was characterized by a once-ubiquitous series of beeps and buzzes heard over the phone used to connect your computer online — along with frustrations of being kicked off the web if anyone else at home needed the landline for another call, and an endless bombardment of CDs mailed out by AOL to advertise free trials.

Eventually, broadband and wireless offerings emerged and rose to dominance, doing away with dial-up’s quirks for most people accessing the internet today.

Still, a handful of consumers have continued to rely on internet services connected over telephone lines. In the U.S., according to Census Bureau data, an estimated 163,401 households were using dial-up alone to get online in 2023, representing just over 0.13% of all homes with internet subscriptions nationwide.

AOL was the largest dial-up internet provider for some time, but not the only one to emerge over the years. Some smaller internet providers continue to offer dial-up today. Regardless, the decline of dial-up has been a long time coming. And AOL shutting down its service arrives as other relics of the internet’s earlier days continue to disappear.

Microsoft retired video calling service Skype just earlier this year, for example — as well as Internet Explorer back in 2022. And in 2017, AOL discontinued its Instant Messenger — a chat platform that was once lauded as the biggest trend in online communication since email when it was founded in 1997, but later struggled to ward off rivals.

AOL itself is far from the dominant internet player it was decades ago — when, beyond dial-up and IMs, the company also became known for its “You’ve got mail” catchphrase that greeted users who checked their inboxes, as famously displayed in the 1998 film starring Tom Hanks and Meg Ryan by the same name.

Before it was America Online, AOL was founded as Quantum Computer Services in 1985. It soon rebranded and hit the public market in 1991. Near the height of the dot-com boom, AOL’s market value reached nearly $164 billion in 2000. But tumultuous years followed, and that valuation plummeted as the once-tech pioneer bounced between multiple owners. After a disastrous merger with Time Warner Inc., Verizon acquired AOL — which later sold AOL, along with Yahoo, to a private equity firm.

At the time Verzion announced that sale to in 2021, an anonymous source familiar with the transaction told CNBC that the number of AOL dial-up users was “in the low thousands,” down from 2.1 million when Verzion first moved to acquire AOL in 2015 — and far below peak demand seen back in the 90s and early 2000s. But beyond dial-up, AOL continues to offer its free email services, as well as subscriptions that advertise identity protection and other tech support.

This story was originally featured on Fortune.com

© AP Photo/Mark Lennihan, File

AOL was still offering dial-up.
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