Air Canada’s entire fleet was grounded on Monday after striking flight attendants refused to comply with a government-backed back-to-work order, demanding the airline return to the bargaining table.

The airline, which carries about 130,000 passengers daily, had planned to restart operations on Sunday after the Canada Industrial Relations Board ordered binding arbitration. However, the Canadian Union of Public Employees (CUPE), representing 10,000 cabin crew, rejected the order, calling it unconstitutional and urging negotiations instead.

The strike centres on pay, with attendants seeking higher wages and compensation for ground duties such as boarding passengers, for which they are currently unpaid. Similar demands in the U.S. have already seen airlines like American and Alaska agree to pay crews during boarding.

Air Canada called the union’s move illegal, while the government is now weighing options to enforce the order, including court action or new legislation. Analysts say Ottawa may hesitate to take heavy-handed steps, given Canada’s Supreme Court has warned against limiting the right to strike.

The standoff has left passengers stranded and uncertain, though many voiced support for the attendants’ demands. Industry experts say the dispute could reshape flight attendant pay structures across North America if unions succeed.

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