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.

Air Canada said on Tuesday it has asked the federal government for a referral to binding arbitration on its contract talks with the flight attendants union, after the airline declared an impasse in the negotiations.