Canada Orders Binding Arbitration to Resolve WestJet Labor Dispute

By Paul Vieira

OTTAWA--Canada's Labor Minister on Thursday ordered WestJet Airlines and the union representing the carrier's maintenance engineers enter into binding arbitration on a new labor agreement, averting strike action during a holiday long-weekend in the country.

Labor Minister Seamus O'Regan, in a statement posted on the social-media platform X, said the decision comes because the parties remain far apart on talks to secure a first collective agreement, and that "tensions have only increased" this week.

Canada's second-biggest airline by seat capacity had started to cancel flights after it received a second-strike notice from the Aircraft Mechanics Fraternal Association, a union representing WestJet maintenance engineers and other technical operations workers. A strike by unionized members could have started as early as Friday, ahead the start of a holiday long-weekend as the country's birthday, Canada Day, falls on Monday, July 1.

WestJet is owned by Toronto-based buyout firm Onex, which trades on Toronto's main stock exchange.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

June 27, 2024 17:19 ET (21:19 GMT)

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