STORY: Air Canada flight attendants are demanding better pay and say they’re ready to walk off the job ... over what they call "unpaid work."On Tuesday, they rejected the airline's proposal for binding arbitration.

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.

The Montreal-based airline, which transports about 130,000 customers a day, said the union representing flight attendants made a recent counteroffer seeking “exorbitant” pay increases, and has rejected an offer to enter third-party binding arbitration.