New Delhi, Aug. 17 -- The Canadian government has stepped in to resolve the contract dispute between Air Canada and its cabin crew by ordering binding arbitration.

This move, strongly supported by the airline but firmly resisted by the flight attendants' union, came after months of failed negotiations.

Thousands of Air Canada flight attendants walked off the job for the first time since 1985, leading to the cancellation of nearly all of Air Canada's 700 daily flights, disrupting travel for over 100,000 people who were either forced to look for alternatives or stay put, Reuters reported.

The major point of contention in the contract talks has been the union's demand for pay during time spent on the ground, such as assisting passengers d...