Air Canada has cancelled flights as a strike looms. Here’s what it means

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”.

US government in talks to take stake in Intel: Report

The administration of United States President Donald Trump is in talks with Intel to have the US government potentially take a stake in the chipmaker.

Intel’s shares surged more than 7 percent in regular trading and then another 2.6 percent after the bell on Thursday, following Bloomberg News’ initial report of the potential deal, which cited people familiar with the plan.

It is unclear what size stake the federal government will take, but Bloomberg reports that the deal will help “shore up” a planned factory in Ohio that has been delayed.

The plan stems from a meeting this week between Trump and Intel CEO Lip-Bu Tan, the report said.

Tan also met Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent.

“The meeting was a very interesting one,” Trump said on Truth Social on Monday, adding that his cabinet members and Tan are going to spend time together and bring suggestions to him during the next week.

The meeting came after Trump publicly demanded the resignation of Tan over his past investments in Chinese tech companies, some linked to the Chinese military.

Intel declined to comment on the report but said it was deeply committed to supporting Trump’s efforts to strengthen US technology and manufacturing leadership.

“Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration,” said White House spokesman Kush Desai.

The details of the stake and price are still being discussed, according to the report.

Struggling business

Any agreement and potential cash infusion will help the years-long efforts to turn around the company’s fortunes. Once the undisputed leader in chip manufacturing, Intel has lost its position in recent years.

The chipmaker’s stock market value has plummeted to $104bn from $288bn in 2020.

Intel’s profit margins – once the envy of the industry – are also at about half their historical highs.

Tan has been tasked to undo years of missteps that left Intel struggling to make inroads in the booming AI chip industry dominated by Nvidia, while investment-heavy contract manufacturing ambitions led to heavy losses.

Any agreement would likely help Intel build out its planned chip complex in Ohio, Bloomberg reported.

Intel’s planned $28bn chip fabrication plants in Ohio have been delayed, with the first unit now slated for completion in 2030 and operations to begin between 2030 and 2031, pushing the timeline back by at least five years.

Taking a stake in Intel would mark the latest move by Trump, a Republican, to deepen the government’s involvement in the US chip industry, seen as a vital security interest to the country.

California governor boosts redistricting effort in growing feud with Trump

California Governor Gavin Newsom has said that the country’s most populous state will promote a partisan redistricting scheme aimed at countering controversial Republican-led redistricting efforts in Texas ahead of the United States’ 2026 midterm elections.

Speaking at a news conference on Thursday, Newsom took a combative stance against US President Donald Trump and said that Democrats must respond to what he said were conservative efforts to politicise the electoral process.

“Today is liberation day in the state of California,” Newsom said, appropriating a term used by Trump to refer to the imposition of tariffs on foreign countries.

Newsom and Trump have frequently sparred as the US president seeks to exert pressure on Democrat-led states that have pushed back against his political agenda on issues such as immigration enforcement.

During his remarks, Newsom said that masked immigration enforcement agents had gathered around the venue, which he depicted as a form of intimidation. Trump prompted outrage in California earlier in the year when he deployed the military and National Guard to Los Angeles during a round of aggressive immigration raids, and suggested at the time that Newsom should be arrested.

“Donald Trump, you have poked the bear, and we will punch back,” said Newsom, who is seen as a possible Democratic contender for the presidency in 2028.

Newsom said that the redistricting scheme, which would favour the Democrats and could net them five additional seats in the 2026 midterm elections, will go before voters in a special election on November 4.

The California governor said the scheme was a direct response to a similar redistricting effort in the Republican-led state of Texas, which would help secure five additional likely seats for the Republican Party.

He stressed that, unlike in Texas, it would be up to California voters to approve or shoot down the new maps, and that they would only go forward if Texas and other states move forward with their own partisan redistricting efforts.

He added that the planned maps, which are expected to be released on Friday, would be in effect until 2030.

Earlier this month, Democrat lawmakers in Texas fled the state to block a House vote on redistricting efforts that would create an additional five Republican-leaning districts.

On Thursday, the lawmakers moved closer to ending their nearly two-week walkout that has blocked the GOP’s redrawing of US House maps and put them under escalating threats by Republicans back home.

The Democrats announced they will return so long as Texas Republicans end a special session and California releases its own redrawn map proposal, both of which were expected to happen on Friday.

Democrats did not say what day they might return.

Newsom’s move underscores calls within the Democratic Party to take a stronger stance against Trump and the Republicans, including moves that violate previously held norms and rules that Democrats say the US right has long since abandoned.

“We cannot unilaterally disarm,” he said, calling on other Democrat-led states to join California.

‘Going to be good for 90 years’: Trump defends record on Social Security

United States President Donald Trump has marked the 90th anniversary of Social Security with a defence of his administration’s policies toward the programme — and attacks on his Democratic rivals.

On Thursday, Trump signed a presidential proclamation in the Oval Office, wherein he acknowledged the “monumental” importance of the social safety-net programme.

“I recommit to always defending Social Security,” the proclamation reads.

“To this day, Social Security is rooted in a simple promise: those who gave their careers to building our Nation will always have the support, stability, and relief they deserve.”

But Trump’s second term as president has been dogged by accusations that he has undermined programmes like Social Security in the pursuit of other agenda items, including his restructuring of the federal government.

What is Social Security?

Social Security in the US draws on payroll taxes to fund monthly payments to the elderly, the spouses of deceased workers, and the disabled. For many recipients, the payouts are a primary source of income during retirement.

The programme is considered widely popular: In 2024, the Pew Research Center found that 79 percent of Americans believe Social Security should not be cut in any way.

Additionally, four out of 10 people surveyed sided with the view that Social Security should be expanded to include more people and more benefits.

But the programme faces significant hurdles to its long-term feasibility.

Last year, the Social Security Administration (SSA) published a report that found the costs for old-age, disability and survivors’ insurance outstripped the programmes’ income.

It noted that the trust funds fuelling those programmes “are projected to become depleted during 2033” if measures are not taken to reverse the trend.

At Thursday’s Oval Office appearance, Trump sought to soothe those concerns, while taking a swipe at the Democratic Party.

“ You keep hearing stories that in six years, seven years, Social Security will be gone,” Trump said.

“And it will be if the Democrats ever get involved because they don’t know what they’re doing. But it’s going to be around a long time with us.”

He added that Social Security was “going to be destroyed” under his Democratic predecessor, former President Joe Biden, a frequent target for his attacks.

Criticism of Trump’s track record

But Trump himself has faced criticism for weakening Social Security since returning to the White House for a second term in January.

Early on, Trump and his then-adviser Elon Musk laid out plans to slash the federal workforce and reduce spending, including by targeting the Social Security Administration (SSA).

In February, the Social Security Administration said it would “reduce the size of its bloated workforce and organizational structure”, echoing Trump and Musk’s rhetoric.

The projected layoffs and incentives for early retirement were designed to cut Social Security’s staff from 57,000 to 50,000, a 12.3-percent decrease.

Under Trump, the Department of Government Efficiency (DOGE) has also announced plans to pare back Social Security’s phone services, though it has since backtracked in the face of public outcry.

In addition, Musk and Trump have attacked Social Security’s reputation, with the former adviser telling podcast host Joe Rogan, “Social Security is the biggest Ponzi scheme of all time.”

The two men even claimed Social Security is paying benefits to millions of long-dead individuals, though critics point out that those claims do not appear to be true.

The COBOL programming system used by the Social Security Administration marks incomplete entries with birthdates set 150 years back, according to the news magazine Wired. Those entries, however, generally do not receive benefits.

The Office of the Inspector General overseeing the Social Security Administration has repeatedly looked into these older entries. It confirmed that these entries are not active.

“We acknowledge that almost none of the numberholders discussed in the report currently receive SSA payments,” a report from 2023 said.

It also indicated that the Social Security Administration would have to pay between $5.5m and $9.7m to update its programming, though the changes would yield “limited benefits” in the fight against fraud.

Still, Trump doubled down on the claim that dead people were receiving benefits on Thursday.

“We had 12.4 million names where they were over 120 years old,” Trump said. “There were nearly 135,000 people listed who were over 160 years old and, in some cases, getting payments. So somebody’s getting those payments.”

Questions after ‘One Big Beautiful Bill’

Critics have also questioned whether Trump’s push to cut taxes will have long-term effects that erode Social Security.

In July, Trump’s signature piece of legislation, the so-called One Big Beautiful Bill Act (OBBBA), cemented his 2017 tax cuts. It also increased the tax deductions for earners who rely on tips or Social Security benefits.

But groups like the Committee for a Responsible Federal Budget, a bipartisan think tank, estimate that the One Big Beautiful Bill Act will shorten the timeline for Social Security’s insolvency.

“The law dictates that when the trust funds deplete their reserves, payments are limited to incoming revenues,” the committee said in late July.

“For the Social Security retirement program, we estimate that means a 24 percent benefit cut in late 2032, after the enactment of OBBBA.”

Still, Trump has repeatedly promised to defend Social Security from any benefit cuts. He reiterated that pledge in Thursday’s appearance.

“American seniors, every single day, we’re going to fight for them. We’re going to make them richer, better, stronger in so many different ways,” Trump said.

“But Social Security is pretty much the one that we think about, and we love it, and we love what’s happening with it, and it’s going to be good for 90 years and beyond.”