Government had no choice, but to intervene. You can't leave people stranded at airports around the world trying to get home. That would make them look far worse than forcing the two sides to negotiate.
The government fully had a choice. Air Canada was fully counting on the government intervention so they didn't bargain in good faith. Once the Union didn't play along (and the Government announced they would probe unpaid hours) then Air Canada was forced to negotiate and actually reached a deal
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Looks like government intervention sped up the process. Didn't it?