A surprise announcement by Qantas has left thousands of passengers stranded at airports around the world.

Australia's biggest airline has grounded all of its flights amid a labour dispute with union members.

Julia Gillard, the country's prime minister, forced an emergency meeting and mediators are trying to reach a solution between Qantas and the labour unions.

Arbitration discussions are to resume by midday Sunday.

Al Jazeera's Andrew Thomas reports from Perth.