Labour Rights

Varanasi, India – Mohammed Ahmad Ansari has spent his entire life in the narrow and congested lanes of Varanasi, a city often described as the spiritual capital of India, and the constituency of Indian Prime Minister Narendra Modi.

The 55-year-old has spent decades weaving Banarasi saris and thoroughly enjoys the clacking noises of handlooms at work against the backdrop of temple bells and evening calls of azan in the holy city that is widely believed to be the oldest settlement in India, dating back as early as 1800 BCE and known for the blend of Hindu-Muslim culture.

But of late, sales have taken a hit for a range of reasons, the latest being ongoing tensions between India and its neighbour, Bangladesh.

Diplomatic relations between the once-close allies have been sharply tested since August last year, when former Prime Minister Sheikh Hasina fled to New Delhi from Dhaka after an uprising against her rule.

Bangladesh blames India for some of its troubles, including Modi’s support for Hasina when she was in power.

There have been a few attacks on religious minorities, including Hindus, since her overthrow, as those communities were viewed as Hasina supporters, and Indian businesses, too, have been boycotted or attacked in Bangladesh as the country demands that New Delhi hand over Hasina to face charges in her home country.

In April, Bangladesh restricted the imports of certain items from India, including yarn and rice. On May 17, India retaliated by banning the imports of readymade garments and processed food items from Bangladesh across land borders. While Bangladesh can still send its saris to India, it will have to use the more expensive and time-consuming sea route.

Banarasi saris are globally known for their exquisite craftsmanship, luxurious silk, meticulous zari work of fine gold and silver wire embroidery, and it can often take up to six months to weave a single sari. These can sell for as much as 100,000 rupees ($1,130) each, or more, depending upon the design and the material used.

“These saris are in high demand in Bangladesh during festivals and weddings, but the ban has led to a more than 50 percent drop in business,” Ansari told Al Jazeera.

This is the latest blow to the industry that has already been hit with earlier government policies – including the so-called demonetisation when India overnight invalidated high-value notes and a hike in power tariffs – as well as the COVID-19 pandemic and cheaper competition from saris made on advanced power looms in other parts of the country, particularly Surat in Gujarat in western India.

This onslaught of the past few years has added up, forcing weavers out of the business and halving their numbers to about 200,000 now, as the rest either left the city in search of other jobs or took up new jobs, like driving rickshaws to earn a living.

Pawan Yadav, 61, a wholesale sari trader in Varanasi, told Al Jazeera that the business has come to a standstill since the change of regime in Dhaka.

“We used to supply around 10,000 saris annually to Bangladesh, but everything has come to a halt,” Yadav said, adding that he is still owed 1.5 million rupees ($17,140) by clients in the neighbouring country, “but the recovery seems impossible due to the political turmoil.”

India has 108 documented ways of draping sarees that hold a special position globally for their intricate designs, vibrant colours symbolising timeless elegance and beauty.

Despite the current turmoil, the textile sector employs the second-highest number of people after agriculture in India, with more than 3.5 million people working in it, per government data. Within that, the sari industry is valued at approximately 80,000 crore rupees ($9.01bn), including some $300m in exports.

Varanasi’s weavers and traders, who voted Modi into parliament for the third consecutive time, are waiting for the prime minister to find an amicable solution to the trade issue with Bangladesh.

In 2015, the Modi government designated August 7 as the National Handloom Day and promised to bring a change in the lives of handloom weavers by promoting domestic products. But nothing meaningful has come of that so far, traders and weavers who spoke to Al Jazeera said.

“India has a unique handloom craft which no country can compete with,” but without sufficient businesses or reliable income, many artisans have been forced to abandon the trade, and now “it is difficult to even find a young weaver”, Ramesh Menon, founder of Save the Loom, a social enterprise working for the revival of handloom, said. “The need of the hour is to re-position handloom as a product of luxury, and not poverty.”

West Bengal traders welcome ban

The situation, however, is completely different in West Bengal, around 610km (380 miles) from Varanasi and along the border with Bangladesh.

The ban on the sari trade between the two countries has offered a new lease of life to the traders of cotton saris in Bengal, who had been losing market share to Dhaka’s saris.

Tarak Nath Das, a cotton sari trader for the past four decades in Shantipur in West Bengal, supplies saris woven by local artisans to various showrooms across the country.

After years of losses, the 65-year-old finally saw business boom in the last few weeks in the lead-up to the main festival of Durga Puja, and was all smiles.

“The saris from Bangladesh had devoured at least 30 percent of our market, and the local industry was bleeding. We have slowly started to recapture our old markets as orders have started pouring in. The sale of the saris during the just concluded festival was better by at least 25 percent as compared to last year,” Das told Al Jazeera.

Shantipur is home to more than 100,000 weavers and traders and is regarded as the hub of the sari business in eastern India. The town and surrounding areas in Nadia district are famous for their handloom weaving industry, which produces a fine variety of saris, including the highly popular Shantipur cotton sari.

Nearby areas of Hooghly and Murshidabad district are also famous for their cotton saris, and these are sold both locally and across the country as well as exported to Greece, Turkiye and other countries.

Sanjay Karmakar, 40, a wholesale trader of cotton saris in Nadia district, is also happy with the ban.

“The local women prefer to buy Bangladeshi saris as they come in attractive packaging and the fabric used there is slightly superior to ours,” he said.

That, coupled with younger women choosing leggings, tunics and other modern clothes over traditional saris, had been pinching sales.

Santanu Guha Thakurta, 62, a fashion creator, told Al Jazeera that Indian weavers and traders would benefit immensely from the import restrictions on Bangladesh. That also shut down cheap knockoffs of the more expensive designs.

“The restrictions came at the right time, just before the onset of the festival season and that immensely benefited the industry.”

Starbucks says it will close underperforming stores across North America as CEO Brian Niccol pushes ahead on a company restructuring effort, which is expected to cost $1bn in a bid to revive the company’s flagging sales.

The coffee chain announced the decision on Thursday.

Overall, store count in the United States and Canada is expected to drop by 1 percent, or several hundred stores, by the end of the 2025 fiscal year, including its iconic Seattle roastery.

Niccol is trying to restore the chain’s “coffeehouse” feel to bring customers back to its outlets after six consecutive quarters of declining US sales.

The cuts are expected to affect 900 workers and follow 1,100 corporate cuts earlier this year. But the cuts are underscored by Niccol’s compensation package valued at $95.8m last year, 6,666 times more than the average barista. It is the largest CEO-to-worker pay gap of any company in the S&P 500, according to the Institute for Policy Studies’s 2025 executive excess report.

Unionised stores hit

Among the closed stores was Starbucks’s flagship unionised location in Seattle, a large cafe with an in-house roastery, the company confirmed.

Talks between Starbucks and the Workers United union, which represents more than 12,000 baristas, began last April, but have hit a wall since.

In December, some members of the union walked off their jobs in multiple US cities in a strike that spanned several days during the peak holiday season.

Workers at the Seattle store, which is located near its headquarters, voted to unionise in 2022, and the union picketed the store on Monday over contract negotiation disputes.

A unionised store in Chicago, on Ridge Avenue, was also closed, the union confirmed. Baristas at the store were picketing on Thursday morning, in a plan made before the store’s closure was known, the union said.

Baristas on the picket line came from stores across the Chicago area. “We’re here to remind the company that it’s the workers who actually bring the people into the stores,” said Diego Franco, who came from a store in the Chicago suburb of Des Plaines.

A Starbucks spokesperson said the union status of stores was “not a factor in the decision-making process.”

In a statement, Starbucks Workers United criticised the closures. “It has never been more clear why baristas at Starbucks need the backing of a union,” the union said, adding that it planned to bargain for affected workers so they could be transferred to other stores.

Analysts at TD Cowen estimate that about 500 North American company-owned stores were affected by the restructuring.

A revamp attempt

In his first year on the job, Niccol has zeroed in on investing in Starbucks’s stores to reduce service times and restore a coffee-house environment, while also trimming management layers.

The company has posted a string of quarterly sales declines in the US as demand for its pricey lattes took a hit from consumers turning picky and competition ramping up.

“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Niccol said in a letter to employees.

The CEO said the company would end the fiscal year with nearly 18,300 total Starbucks locations – company-operated and licensed – across the US and Canada. This compares to the 18,734 locations disclosed in a July regulatory filing.

Niccol has enjoyed the confidence of investors since taking over after his leadership at Chipotle Mexican Grill, where he is credited with leading a turnaround at the burrito chain.

“Starbucks is taking more aggressive actions within turnaround efforts. The store closures are more than we anticipated, while we believe the layoffs fit within management’s previously announced zero-based budgeting framework,” TD Cowen analyst Andrew Charles said.

Starbucks said on Thursday the job cuts would be in its support teams and added the company would also close many open positions.

The company employed about 10,000 people in non-coffee-house roles in the US, as of September 29, 2024.

“This is a more significant action that we understand will impact partners and customers,” Niccol said.

At the same time, Starbucks is investing in improving staffing and incorporating technology to more efficiently sequence orders at its coffee shops and enhance customer experience.

The company said earlier this year it would eliminate 1,100 corporate roles. In August, it also announced a modest 2 percent hike to all salaried employees in North America this year.

A coordinated online doxxing campaign has emerged in the wake of right-wing activist Charlie Kirk’s killing, targeting academics, teachers, government employees and others who have posted critical remarks about him.

At least 15 people have been fired or suspended from their jobs after discussing the killing online, according to a Reuters tally on Saturday based on interviews, public statements and local press reports. The total includes journalists, academic workers and teachers.

On Friday, a junior Nasdaq employee was fired over her posts related to Kirk.

Others have been subjected to torrents of online abuse or seen their offices flooded with calls demanding they be fired, part of a surge in right-wing rage that has followed the killing.

Chaya Raichik, who runs the right-wing “Libs of TikTok” account and is known for her anti-immigrant activism, is at the forefront of the campaign. She has shared names, photos and workplace details of individuals who expressed little sympathy for Kirk’s death.

In one case, Raichik targeted a lecturer at California State University, Monterey Bay, who reportedly wrote in an Instagram story: “I cannot muster much sympathy, truly. People are going to argue ‘He has a family, he has a wife and kids.’ What about all the kids, the many broken families from the over 258 school shootings 2020–present?”

Raichik reposted the lecturer’s photo, accusing him of mocking Kirk’s assassination.

The lecturer has not commented, but several teachers across the United States – including in California, Florida, Iowa, Pennsylvania, Maryland, Massachusetts, Michigan, North Carolina, South Carolina, Oklahoma, Oregon and Texas – have been suspended or dismissed over similar online remarks. Union leaders condemned Kirk’s killing, but also warned against punishing educators for free speech.

Raichik has also targeted members of the military. One Coast Guard employee is under investigation after posting a meme saying he did not care about Kirk’s death. A former Twitter worker was also singled out for criticising the New York Yankees for holding a moment of silence for Kirk.

A newly registered site, “Expose Charlie’s Murderers,” has 41 names of people it alleges were “supporting political violence online” and claims to be working on a backlog of more than 20,000 submissions.

A Reuters review of the screenshots and comments posted to the site shows that some of those featured joked about or celebrated Kirk’s death. One was quoted as saying, “He got what he deserved”, and others were quoted providing variations on “karma’s a bitch.” Others, however, were critical of the far-right figure while explicitly denouncing violence.

Some institutions have already taken disciplinary action. Middle Tennessee State University dismissed an assistant dean after she wrote: “Looks like ol’Charlie spoke his fate into existence. Hate begets hate. ZERO sympathy.” The comment referred to Kirk’s 2023 defence of gun violence, in which he argued: “I think it’s worth to have a cost of, unfortunately, some gun deaths every single year so that we can have the Second Amendment … That is a prudent deal. It is rational.”

Even quoting that remark has been enough for some to be targeted.

Republican response

Some Republicans want to go further still and have proposed deporting Kirk’s critics from the US, suing them into penury or banning them from social media for life.

“Prepare to have your whole future professional aspirations ruined if you are sick enough to celebrate his death,” said conspiracy theorist Laura Loomer, a prominent ally of Trump and one of several far-right figures who are organising digital campaigns on X to ferret out and publicly shame Kirk’s critics.

The wave of firings and suspensions has raised concerns over free expression, while far-right activists celebrate what they see as a campaign of accountability.

US lawmaker Clay Higgins said in a post on X that anyone who “ran their mouth with their smart**s hatred celebrating the heinous murder of that beautiful young man” needed to be “banned from ALL PLATFORMS FOREVER.”

The US Deputy Secretary of State Christopher Landau said on the same site that he had been disgusted to “see some on social media praising, rationalizing, or making light of the event, and have directed our consular officials to undertake appropriate action.”

Republicans’ anger at those disrespecting Kirk’s legacy contrasts with the mockery some of the same figures – including Kirk – directed at past victims of political violence.

For example, when former House Speaker Nancy Pelosi’s husband, Paul, was clubbed over the head by a hammer-wielding conspiracy theorist during a break-in at their San Francisco home shortly before the 2022 midterm elections, Higgins posted a photo making fun of the attack. He later deleted the post.

Loomer falsely suggested that Paul Pelosi and his assailant were lovers, calling the brutal assault on the octogenarian a “booty call gone wrong.”

Speaking to a television audience a few days after the attack, a grinning Kirk called for the intruder to be sprung from jail.

“If some amazing patriot out there in San Francisco or the Bay Area wants to really be a midterm hero, someone should go and bail this guy out,” he said.

Seoul, South Korea – Go Kyoung-min, 34, a nurse at Severance Hospital in Seoul, found a new sense of balance in her life during the first half of this year.

As the mother of twin daughters born in 2021, Go often felt guilty about not spending enough time with her children because of work.

But after opting into the four-day workweek offered by her workplace, Go was able to spend more time with her family, attending daycare events she had previously missed and relying less on her in-laws for childcare.

Severance is the first hospital in South Korea to trial a four-day workweek, aiming to improve the work-life balance of its staff.

Under the program, introduced in 2023 following an agreement between labour and management, some hospital employees are allowed to take three days off per week in exchange for a 10 percent reduction in salary.

Staff take turns participating in six-month rotations, after which they return to a five-day week.

The program appears to have improved nurses’ health and wellbeing, enhanced the quality of medical services, boosted organisational efficiency, and reduced turnover rates, the Korea Worker Institute-Union Center said in a report about the trial released last month.

According to the report, turnover among participating nurses with less than three years’ experience fell from 19.5 percent to 7 percent.

Average sick leave per employee also fell by one day during the trial, while it increased by 0.7 days in wards on five-day weeks.

Go said the four-day workweek not only improved her work-life balance but helped her be more focused and kinder to her patients.

“I work in the pancreatobiliary ward, where many patients face critical situations. This makes the workload heavier. With a four-day workweek, I feel I can take more time to listen to patients and care for them with greater responsibility,” she told Al Jazeera.

“My children used to be happy when their grandparents picked them up from daycare, taking it for granted. But once I did it more often, they expected me to be there.”

Go’s experience is unusual in South Korea, a country notorious for its long working hours, where staying late is often seen as a mark of a good employee.

South Korean workers logged an average of 1,865 hours in 2024, according to the Organisation for Economic Co-operation and Development (OECD), the sixth-highest among developed countries and well above the OECD average of 1,736 hours.

They worked 248 hours more than their counterparts in neighbouring Japan.

While long workdays are still the norm, shorter work arrangements are gradually spreading in the private sector.

Some companies, particularly IT firms and startups, have been experimenting with four-day or four-and-a-half-day workweeks for several years.

South Korea’s major conglomerates have also shown interest in more flexible work arrangements, with Samsung Electronics, SK Group, and Kakao introducing programmes offering employees periodic breaks of a full or half-day.

Lee Jae-ho, 42, a father of two who works at sports and health technology company Kakao VX, has benefitted from one such program, getting one Friday off each month and working 1.5 hours less on the remaining Fridays.

Lee said working fewer days does not necessarily reduce efficiency.

“When I have a Friday off or shorter hours, I adjust my schedule in advance, so the reduced workdays have little impact on productivity,” Lee told Al Jazeera.

“I have more time to have dinner with my family, recharge, and pursue my hobbies and growth.”

The push to reform South Korea’s work culture has gained momentum since the election of left-leaning President Lee Jae-myung in June.

During his campaign, Lee pledged to cut working hours below the OECD average by 2030 and introduce a four-and-a-half-day workweek.

At a July news conference, Lee reiterated that South Koreans needed to work less, suggesting that a system of long hours with low productivity was unsustainable.

“We have competed more on quantity than on quality,” Lee said.

Cafe24, South Korea’s leading e-commerce solutions provider, implemented a full four-day workweek in July, after previously offering workers every other Friday off, while maintaining employees’ salaries and overall hours.

In June, Gyeonggi Province, which surrounds Seoul, launched the country’s first pilot project of a four-and-a-half-day workweek without wage cuts among local governments, set to run until 2027.

The programme, running until 2027, encourages small and midsize businesses and public institutions in the province to experiment with reduced working hours by providing financial support to cover the increased labour costs.

Some experts and business leaders have expressed concerns about the moves to cut the working week.

Kwon Young-sik, director of human resources at Yonsei University Health System, the parent organisation of Severance, has said permanently shifting to a four-day workweek would cost about 100 million won ($720) per ward in labour costs alone.

“Over the past three years, about 1.2 billion won has been spent on labour costs,” Kwon said last month at an event where Severance’s labour union presented the results of the pilot programme.

At the same event, Lee Kang-young, general director of Severance, said institutional and financial support would be “absolutely necessary” for a four-day workweek to be sustainable.

Park Nam-gyoo, a business professor at Seoul National University, said he would be concerned about productivity and disparities in the labour market if a four-and-a-half-day workweek became the norm.

“South Korea is an export-led economy. It faces an uncertain future if it fails to remain competitive globally,” Park told Al Jazeera.

He said the country needed to consider its low birthrate, sluggish economy, and challenges to its global competitiveness.

But workers like Go and Lee hope more people can experience the benefits they have enjoyed.

“There were absolutely no drawbacks. The only downside in my case was that, as it is a pilot programme, only a few could participate, so I feel sorry for my colleagues who couldn’t. Other than that, it ran smoothly without any operational issues,” Go said.

“Just as the five-day workweek was initially met with concern but eventually settled in, a four-day workweek is expected to gradually bring positive changes to society,” Lee said.

As the Labor Day holidays get under way, tens of thousands of protesters have gathered at rallies across the United States to call for stronger worker protections and attack a range of policies undertaken by the administration of US President Donald Trump.

More than 1,000 demonstrations are expected on Monday to span all 50 states, under the banner “Workers Over Billionaires.”

Protesters are demanding stronger worker protections, fully funded schools, healthcare and housing for all, and an end to corporate corruption, attacks on marginalised communities, and federal overreach under the Trump administration.

In New York, hundreds of people gathered outside the Trump Tower, chanting for Trump to step down and calling the president a fascist. As a brass band played, workers held up signs demanding a living wage and universal healthcare.

‘Subminimum’ wage

Giovanni Uribe, with the restaurant worker advocacy organisation One Fair Wage, told Al Jazeera’s Kristen Saloomey he had come out to protest against billionaires whittling away the rights of workers.

“Service workers in New York City are the backbone of this city,” he said. “The National Restaurant Association is our number one opponent that’s fighting to keep subminimum wage intact so they don’t have to pay their workers their full minimum wage to survive. So we’re just asking for a livable wage.”

The federally set minimum wage in the US is $7.25 an hour – a figure that has not been raised since 2009 due in part to the successful lobbying of industry groups. Tipped workers, like wait staff, have a federally mandated “subminimum” wage of $2.13, a figure set in 1991 that is legally required to be offset to reach the $7.25 minimum – but which advocates say often results in wage theft.

While some states have higher minimum wages – New York City’s currently stands at $16.50 – the figure is often far below a living wage.

According to the MIT Living Wage Calculator, a single adult without children would need an hourly wage of nearly $33 in NYC to cover average basic expenses. Mississippi, which has one of the lowest costs of living in the country and has no state minimum wage, has a living wage of $20.75 – nearly three times the minimum wage.

Chicago protests target National Guard

In downtown Chicago, thousands turned out to demonstrate against Trump’s promise to target Chicago next in a deployment similar to those under way in Los Angeles and Washington, DC, two other Democrat-run cities.

Mayor Brandon Johnson, speaking to the crowd, vowed that Chicago would resist federal encroachment.

“This is the city that will defend the country,” he said, receiving loud cheers from protesters waving blue-striped Chicago flags.

As the crowd wove through the city, some marchers walking dogs and carrying children on their shoulders, diners sitting outside at local restaurants and cafes pumped their fists and cars honked in support.

Protesters said they were concerned by Trump’s threat to send out the National Guard and additional agents from US Immigration and Customs Enforcement (ICE).

Filiberto Ramirez, 72, feared violence if additional ICE agents came to the city. “Do we feel there’s gonna be trouble? Yes,” Ramirez said. “I hope nobody gets hurt.”

Trump has singled out Chicago in recent weeks over violent crime, calling the city “a mess”, “a hellhole”, and a “killing field”. But on Monday, Chicagoans at the protest said they did not feel the National Guard was a solution to crime in the city.

“There is a crime problem,” said Yvonne Spears, 67, “but the National Guard is supposed to fight for us, not against us.”

Homicide rates in the nation’s third-largest city have plunged in recent years, according to city crime data. And though a 2025 University of Chicago survey reported roughly half of Chicagoans feel unsafe in their neighbourhoods at night, many protesters said on Monday that they felt largely safe in the city.

City and state leaders have already readied measures to shield Chicago from federal troops and would likely launch a slew of lawsuits challenging a deployment, which legal experts said would violate the US Constitution and a 19th-century law prohibiting the military from enforcing domestic laws.

‘Workers Over Billionaires’

Matt Duss, executive vice-president at the Center for International Policy and a former adviser to US Senator Bernie Sanders of Vermont, told Al Jazeera that while protesters in different locales may be attending rallies for a range of reasons, many of their financial concerns are likely to overlap.

“I think there are a set of shared concerns: the cost of living, the cost of housing, the cost of basic goods, groceries, the cost of education, the overall sense that people in the United States have lost control of their economic and political lives and their futures,” he said.

Trump, a real estate scion who came to power on a platform that in part tapped into popular economic frustration, is a billionaire himself and has loaded his administration with billionaires.

The most famous of them – Elon Musk – served as Trump’s top adviser before stepping down amid a falling-out.

In the name of improving government efficiency, Musk oversaw the gutting of a number of federal agencies, at a cost of nearly $22bn, according to a congressional investigation carried out by Democratic US Senator Richard Blumenthal in July.

The Canada Industrial Relations Board (CIRB) has said Air Canada’s ongoing strike, in which 10,000 cabin crew members have walked off their jobs, is illegal after strikers ignored orders to return to work.

The regulatory board made the call on Monday after it previously declared that workers must return to the job as of 2pm ET (18:00 GMT) on Sunday.

The cabin crew for the Montreal-based carrier had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Workers have said that the proposed wage hikes are insufficient to keep up with inflation and match the federal minimum wage.

The attendants are also calling to be paid for work performed on the ground, such as helping passengers to board. They are now only paid when planes are moving, sparking some vocal support from Canadians on social media.

A leader of the union on strike against Air Canada said on Monday that he would risk jail time rather than allow cabin crews to be forced back to work.

“If it means folks like me going to jail, then so be it. If it means our union being fined, then so be it. We’re looking for a solution here,” said Mark Hancock, Canadian Union of Public Employees (CUPE) national president, at a press conference after a deadline by the board to return to work expired with no union action to end the strike.

Air Canada’s CEO Michael Rousseau told the news agency Reuters that he was “amazed” that the union was not following the law, adding, “At this point in time, the union’s proposals are much higher than the 40 percent [hike we have offered]. And so we need to find a path to bridge that gap,” he said, without suggesting what that process would be. “We’re always open to listen, and have a conversation,” he said.

Canada’s Prime Minister Mark Carney voiced his support for the cabin crews, saying that they should be “compensated equitably at all times”.

Pushing for a resolution, Carney said, “We are in a situation where literally hundreds of thousands of Canadians and visitors to our countries are being disrupted by this action.”

The airline normally carries 130,000 people daily during the ongoing peak summer travel season and is part of the global Star Alliance of airlines.

On Monday, Air Canada suspended its third-quarter and annual profit forecasts as its planes remained grounded.

The union said it would continue its strike and invited Air Canada back to the table to “negotiate a fair deal”.

A government nudge

The government’s options to end the strike now include asking courts to enforce the order to return to work and seeking an expedited hearing.

The minority government could also try to pass legislation that would need the support of political rivals and approval in both houses of the Parliament of Canada, which are on break until September 15.

“The government will be very reticent to be too heavy-handed because in Canada, the Supreme Court has ruled that governments have to be very careful when they take away the right to strike, even for public sector-workers who may be deemed essential,” said Dionne Pohler, professor of dispute resolution at Cornell University’s Industrial and Labor Relations School.

Another option is to encourage bargaining, Pohler said.

The government did not respond to requests for comment.

On Saturday, Carney’s Liberal government moved to end the strike by asking the CIRB to order binding arbitration. The CIRB, an independent administrative tribunal that interprets and applies Canada’s labour laws, issued the order, which Air Canada had sought, and unionised flight attendants opposed.

The previous government, under former Prime Minister Justin Trudeau, intervened last year to head off rail and dock strikes that threatened to cripple the economy, but it is highly unusual for a union to defy a CIRB order.

Travellers at Toronto Pearson International Airport over the weekend said they were confused and frustrated about when they would be able to fly.

Italian Francesca Tondini, 50, sitting at the Toronto airport, said she supported the union even though she had no idea when she would be able to return home.

“They are right,” she said with a smile, pointing at the striking attendants.

The dispute between cabin crews and Air Canada hinges on the way airlines compensate flight attendants. Most, including Air Canada, pay them only when planes are in motion.

In their latest contract negotiations, flight attendants in both Canada and the United States have sought compensation for hours worked, including for tasks such as boarding passengers.

New labour agreements at American Airlines and Alaska Airlines legally require carriers to start the clock for paying flight attendants when passengers are boarding.

American flight attendants are now also compensated for some hours between flights. United Airlines’ cabin crews, who voted down a tentative contract deal last month, also want a similar provision.

On the markets, Air Canada’s stock is down 1.6 percent as of 12pm in Toronto (16:00 GMT). US carrier United Airlines – another Star Alliance member, which does not have a striking cabin crew and which serves several major Canadian cities – is up 1.4 percent.

Air Canada, the country’s largest airline, started suspending flights on Thursday morning ahead of a potential strike by its flight attendants.

Hundreds of flights are expected to be cancelled by the end of the week if the flight attendants walk off their jobs as expected.

Air Canada and the flight attendants’ union have struggled to agree upon a deal that would increase compensation for the airline workers.

Here is what we know about the labour dispute and its potential consequences:

What is happening to Air Canada?

The Montreal-based airline has reached an impasse with the union representing more than 10,500 flight attendants in a dispute over compensation, despite eight months of negotiations. Both the company and the union have issued notices that disruptions to the airline’s services will begin on Saturday.

What services will be affected, and when?

Air Canada said it will reduce flights gradually over three days, starting with dozens of cancellations on Thursday and about 500 more by Friday evening. By 1am Toronto time (05:00 GMT) on Saturday, all flights will be halted.

Cargo services will also be affected, but Air Canada Express regional flights will operate as usual, as they rely on contracts with other airlines.

However, these partners handle only about 20 percent of Air Canada’s daily passengers. Air Canada and Air Canada Rouge, a subsidiary that offers low-cost flights, carry roughly 130,000 passengers a day.

In response to the walkout anticipated for early Saturday, Air Canada has announced its own “lockout”, a strategy that prevents employees from coming into work in order to force them to the negotiating table.

The airline has warned that once the lockout begins, about 1:30am Toronto time (05:30 GMT), it may not be able to quickly restore flights.

Mark Nasr, the chief operations officer for Air Canada, explained that a restart, “under the best circumstances, will take a full week to complete”.

Why are flight attendants striking?

Wages are the main sticking point in the negotiations.

The Canadian Union of Public Employees (CUPE) said its negotiators are unhappy with Air Canada’s proposed wage hikes and other compensation terms, and they have therefore turned down an offer to move the contract discussions into arbitration.

“For the past nine months, we have put forward solid, data-driven proposals on wages and unpaid work, all rooted in fairness and industry standards,” said Wesley Lesosky, president of the Air Canada component of CUPE, in a statement. “Air Canada’s response to our proposals makes one thing clear: they are not interested in resolving these critical issues.”

According to the union, the airline declined to raise flight attendant pay to meet industry standards, keep pace with inflation or match the federal minimum wage.

Since 2000, starting wages for flight attendants with Air Canada have risen only $3 per hour, while inflation has climbed 69 percent over the same period, the union explained.

We stand in solidarity with Air Canada flight attendants who are done with unpaid work and poverty wages!
📢 Fair pay. Dignity on the job. No more excuses!
Read more → https://t.co/YqVQEwTbpC#aircanadastrike

— CUPE Ontario (@CUPEOntario) August 12, 2025

Air Canada, however, said the union turned down a proposal sent on Monday that included a 38-percent pay increase over four years, along with other benefits and protections.

But the union disputed the benefits of that deal. Instead, it explained that the flight attendants suffered a 9-percent cut in their last contract, meaning that an 8-percent increase over the first year of the new deal is inadequate to recoup the costs.

“It is, in effect, a pay cut,” CUPE said in its statement.

The union also argues that Air Canada does not currently offer “ground pay”, an industry term that describes compensation given for all the services provided before a plane’s doors close.

That work can include assistance given to travellers in the airport, baggage handling and helping travellers get settled in their seats as the plane prepares to push back from the airport gate.

“[For] any of our federally regulated safety checks, which we do an hour before boarding, we are not compensated. We are not compensated for boarding and deplaning,” Shanyn Elliott, the chair of the CUPE strike committee, told the news outlet Global National.

“It averages about 35 hours a month that we are at work not paid.”

The union said that it is seeking full pay for all hours worked, along with cost-of-living increases.

Ground pay, also called “boarding pay”, has been a key issue in negotiations at US airlines as well, since many carriers do not compensate flight attendants at their hourly rate during crucial periods before or after the flight.

How many passengers will be affected, and what will they get in return?

The airline, which serves 64 countries with a fleet of 259 aircraft, said the shutdown poses “a major risk” to both the company and its employees. The disruption could impact 130,000 passengers each day, including 25,000 Canadians, during the height of the summer travel season.

Air Canada has nearly 430 daily flights between Canada and the US, reaching more than 50 US airports. It also provides domestic service to 50 Canadian airports and averages more than 500 daily flights.

The airlines said that passengers whose flights are cancelled will be notified and can receive a full refund online.

The airline has also arranged with other Canadian and international carriers to offer alternative travel options where possible. But it emphasised that some flight alternatives may not be feasible.

“Given other carriers are already very full due to the summer travel peak, securing such capacity will take time and, in many cases, will not be immediately possible,” the airline explained.

How has the government responded?

Air Canada has said it has sought government-directed arbitration to resolve the situation.

Under Canada’s Labour Code, the government’s labour minister has the power to intervene and trigger the imposition of a deal through the Canada Industrial Relations Board.

That, in turn, could force flight attendants back to work. The union has asked Canada’s PM Mark Carney “to refrain from intervening”. It argued that government action would tip the negotiations in Air Canada’s favour.

“Why would any employer bother negotiating if they know the government is going to bail them out when negotiations get tough?” the union wrote in a letter posted to social media.

Canada’s Labour Minister Patty Hajdu urged both sides to return to the bargaining table. “To be clear: deals that are made at the bargaining table are the best ones,” Hajdu said.

“I urge both parties to put their differences aside, come back to the bargaining table and get this done now for the many travellers who are counting on you,” she added.

Please see my statement on the latest development between CUPE Flight Attendants at Air Canada and Air Canada: pic.twitter.com/hqQJ5JDYkN

— Patty Hajdu (@PattyHajdu) August 14, 2025

Attendants union says there is still time to reach an agreement, as airline warns 100,000 passengers affected by Friday.

Air Canada says it is at an impasse with its negotiations with the union representing its flight attendants and has announced that it will be pausing all its flights on Saturday morning.

Air Canada said on Thursday it expects to cancel several dozen flights by day’s end and approximately 500 flights by the end of Friday, affecting 100,0000 passengers, in advance of a planned Saturday strike by its unionised flight attendants.

The Air Canada executives were speaking at a news conference that ended abruptly due to protests by union members donning placards.

Mark Nasr, chief operations officer at Air Canada, said the complexity of the carrier’s network, which operates more than 250 aircraft on flights to more than 65 countries, requires it to start winding down service now.

A strike would hit the country’s tourism sector during the height of summer travel and poses a new test for the governing Liberal government under Prime Minister Mark Carney, which has been asked by the carrier to intervene and impose arbitration.

Air Canada and low-cost carrier Air Canada Rouge carry about 130,000 customers a day. Air Canada is also the foreign carrier with the largest number of flights to the US.

US carrier United Airlines, a code-share partner of Air Canada, said it has issued a travel waiver to help customers manage their travel plans.

Half of hourly rate for hours worked

The dispute hinges on the way airlines compensate flight attendants. Most airlines have traditionally paid attendants only when planes are in motion.

But in their latest contract negotiations, flight attendants in North America have sought compensation for hours worked, including for tasks like boarding passengers and waiting around the airport before and between flights.

The union said Air Canada had offered to begin compensating flight attendants for some unpaid work, but only at 50 percent of their hourly rate.

The airline said it had offered a 38 percent increase in total compensation for flight attendants over four years, with a 25 percent raise in the first year.

Restarting Air Canada’s operations would take a week to complete, Nasr told reporters in Toronto.

“It’s simply not the kind of system that we can start or stop at the push of a button,” he said. “So in order to have a safe and orderly wind down, we need to begin down.”

FlightAware data shows Air Canada has, thus far, cancelled only four flights as of Thursday morning.

Earlier in the day, Canadian Jobs Minister Patty Hajdu urged the country’s largest carrier and union to return to the bargaining table to reach a deal that could avert disruptions.

“I understand this dispute is causing a great deal of frustration and anxiety to Canadians who are travelling or worrying about how they will get home,” she said in a statement posted on X. “I urge both parties to put their differences aside, come back to the bargaining table and get this done now for the many travelers who are counting on you.”

A spokesperson for the Canadian Union of Public Employees, which represents the carrier’s 10,000 flight attendants, said Air Canada negotiators are not bargaining and have not responded to a proposal they made earlier this week.

“We believe the company wants the federal government to intervene and bail them out.”

CUPE has previously said it opposes binding arbitration.

Arielle Meloul-Wechsler, chief human resources officer at Air Canada, said the carrier never left the table.

“We are still available to bargain at any time on the condition that the negotiation has substance,” she said.

Union Pacific has announced its intentions to buy its smaller rival, Norfolk Southern, which would create the first coast-to-coast freight rail operator in the United States and reshape the movement of goods from grains to autos across the US.

The Omaha, Nebraska-based railroad giant announced the proposed $85bn deal on Tuesday.

If the merger is approved, the transaction would be the largest-ever buyout in the railroad sector.

Union Pacific has a stronghold in the western two-thirds of the US, with Norfolk’s 31,382 km (19,500-mile) network that primarily spans 22 eastern states.

The two railroads are expected to have a combined enterprise value of $250bn and would unlock about $2.75bn in annualised synergies, the companies said.

The $320 per share price implies a premium of 18.6 percent for Norfolk from its close on July 17, when reports of the merger first emerged.

The companies said last week on Thursday that they were in advanced discussions for a possible merger.

The deal will face lengthy regulatory scrutiny amid union concerns about potential rate increases, service disruptions and job losses. The 1996 merger of Union Pacific and Southern Pacific had temporarily led to severe congestion and delays across the Southwest.

The deal reflects a shift in antitrust enforcement under US President Donald Trump’s administration. Executive orders aimed at removing barriers to consolidation have opened the door to mergers that were previously considered unlikely.

Surface Transportation Board Chairman Patrick Fuchs, appointed in January, has advocated for faster preliminary reviews and a more flexible approach to merger conditions.

Even under an expedited process, the review could take from 19 to 22 months, according to a person involved in the discussions.

Major railroad unions have long opposed consolidation, arguing that such mergers threaten jobs and risk disrupting rail service.

“We will weigh in with the STB [regulator] and with the Trump administration in every way possible,” said Jeremy Ferguson, president of the SMART-TD union’s transport division, after the two companies said they were in advanced talks last week.

“This merger is not good for labour, the rail shipper/customer or the public at large,” he said.

The companies said they expect to file their application with the STB within six months.

The SMART-TD union’s transport division is North America’s largest railroad operating union with more than 1,800 railroad yardmasters.

The North American rail industry has been grappling with volatile freight volumes, rising labour and fuel costs and growing pressure from shippers over service reliability, factors that could further complicate the merger.

Industry consolidation

The proposed deal has also prompted competitors BNSF, owned by Berkshire Hathaway, and CSX, to explore merger options, people familiar with the matter said.

Agents at the STB are already conducting preparatory work, anticipating they could soon receive not just one, but two megamerger proposals, a person close to the discussions told Reuters on Thursday.

If both mergers are approved, the number of Class I railroads in North America would shrink to four from six, consolidating major freight routes and boosting pricing power for the industry.

The last major deal in the industry was the $31bn merger of Canadian Pacific and Kansas City Southern that created the first and only single-line rail network connecting Canada, the US and Mexico.

That deal, finalised in 2023, faced heavy regulatory resistance over fears it would curb competition, cut jobs and disrupt service, but was ultimately approved.

Union Pacific is valued at nearly $136bn, while Norfolk Southern has a market capitalisation of about $65bn, according to data from LSEG.

As of 12:15pm in New York (16:15 GMT), Union Pacific’s stock is down 3.9 percent, and Norfolk Southern is down 3.2 percent. Competitor CSX is also trending down. The stock has fallen 1.6 percent since the market opened this morning.