MONTREAL (Reuters) -Air Canada flight attendants rejected the airline's proposal for binding arbitration on Tuesday and continued direct talks, the Canadian Union of Public Employees said on Tuesday. Flight attendants, who demonstrated on Monday at major Canadian airport hubs, could strike as early as August 16.

The union representing Air Canada's flight attendants has signalled that its members intend to go on strike this weekend, paving the way for workers to walk off the job as early as Saturday morning.The Canadian Union of Public Employees (CUPE) gave the carrier a requisite 72-hour notice after the two sides reached an "impasse" in negotiations.