Air Canada Strike: Govt Intervention Yet to Resolve Cabin Crew Walkout Affecting Thousands

The Canadian government’s order on Saturday evening is yet to resolve the disruption faced by thousands of Air Canada passengers. The country’s largest carrier was forced to cancel nearly all its flights after 10,000 flight attendants walked off the job demanding better pay.

This is the first strike by Air Canada’s cabin crew since 1985. Represented by the Canadian Union of Public Employees (CUPE), they launched industrial action on Saturday after eight months of failed negotiations. CUPE rejected the carrier’s offer of a 38% wage hike over four years, calling it insufficient.

Air Canada typically operates about 700 daily flights serving 130,000 passengers. Local media reported travellers stranded at airports in Toronto and elsewhere.

“Due to the volume of flight cancellations, we are also providing a full refund upon request for the unused portion of tickets purchased on or before 15 August 2025 for travel with Air Canada or Air Canada Rouge between 16 and 17 August 2025,” the airline said.

It added that passengers booked to travel between 15–19 August could rebook flights free of charge if tickets were purchased or Aeroplan points redeemed before 14 August.

The impact extends beyond individual passengers. According to the Canadian government, more than 40% of shipments of critical goods such as pharmaceuticals and organ tissue are carried by Air Canada.

“The enormous impact of a nationwide labour disruption of this scale is already being felt by Canadians and visitors. This impact will grow significantly with a prolonged dispute,” said Minister of Jobs and Families, Patty Hajdu.

Govt Orders Binding Arbitration

On Saturday, Hajdu said she was invoking her powers under Section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to arbitrate the dispute.

She told reporters the order, which is binding on both Air Canada and CUPE, could take 24–48 hours to take effect. However, Air Canada said restarting operations after the strike would take up to a week, Reuters reported.

“This nationwide labour disruption is impeding the movement of passengers and critical cargo. In a year when Canadian families and businesses have already faced significant disruption, this is not the time to add further challenges to their lives and our economy,” Hajdu said in a separate statement.

Later, the airline confirmed that “all flights of Air Canada and Air Canada Rouge remain suspended pending the outcome of the CIRB process.”

A CUPE spokesperson said the strike would only end once the CIRB issued a binding arbitration notice, according to Reuters.

In a post on X, CUPE accused Canada’s Liberal government of siding with Air Canada by yielding to the airline’s demands, calling it “a reward for refusing to negotiate fairly.” Union leader Henly Larden, a flight attendant, condemned the move as “incredibly disgusting” and urged the airline to return to good-faith negotiations.

What Are Flight Attendants Demanding?

The core dispute centres on pay, particularly compensation for duties performed on the ground. Air Canada offered a 38% pay rise over four years, 25% in the first year and partial pay (50% of the hourly rate) for some currently unpaid tasks.

CUPE rejected the proposal, arguing it fell short. The union is pushing for wage parity with Air Transat, where flight attendants secured 30% raises over five years, making them Canada’s highest paid. By late 2025, a new Transat hire will earn $29.22 an hour, compared with $21.71 at Air Canada and $18.81 at Rouge.

Currently, attendants are mostly paid only while planes are in motion. They are demanding compensation for ground time between flights and for assisting passengers during boarding.