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Air Canada delays restart as union defies government return-to-work order

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Air Canada delays restart as union defies government return-to-work order
Policy
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Michael Rousseau, President and Chief Executive Officer | Air Canada

Air Canada and its subsidiary, Air Canada Rouge, have postponed plans to restart operations after the Canadian Union of Public Employees (CUPE), which represents the airline’s flight attendants, announced it would not comply with a government order to return to work. The carrier had initially planned to resume flights on the evening of August 17, 2025, following a directive from the Canadian Industrial Relations Board (CIRB) that required employees to end their strike and return by 2:00 PM EDT.

The labor dispute centers on demands for improved working conditions, compensation for unpaid ground duties, and higher wages. On August 16, Air Canada locked out approximately 10,000 flight attendants after they began striking. Since then, about 240 flights scheduled for August 17 have been canceled. Normally, Air Canada operates around 700 daily flights.

Federal Minister Patty Hajdu directed the CIRB to refer contract negotiations between Air Canada and CUPE to final binding arbitration under section 107 of the Canada Labour Code in an effort to resolve the impasse. However, CUPE has rejected both arbitration and Air Canada's most recent compensation proposal.

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Mark Hancock, national president of CUPE, addressed supporters outside Toronto’s Pearson International Airport saying: “our members are not going back to work.” In response to accusations from Air Canada that the union had “illegally” instructed its members to ignore the CIRB order, Hancock issued a statement on August 16: “will continue to fight on the picket lines, in the streets, at the bargaining table, in the courts, and in Parliament, until the injustice of unpaid work is finally addressed.”

CUPE also criticized both Air Canada and government intervention. National Secretary-Treasurer Candace Rennick described recent actions as “absolutely shameful and a blatant betrayal” by Air Canada. She further stated: “on behalf of an already wildly profitable employer, while a predominantly female workforce fights tooth and nail for a path out of poverty, is not just unjust, it’s a disgraceful misuse of power that reeks of systemic bias and corporate favoritism.”

The dispute intensified after CUPE issued a strike notice on August 13. In response, Air Canada delivered its own lockout notice as required by law. Both airlines have since reduced schedules affecting roughly 100,000 passengers since August 14.

A major point of contention is how flight attendants are compensated; most airlines pay them only when planes are moving—ground duties remain unpaid. On August 14th Air Canada proposed increasing total compensation by up to 38% over four years with hourly rates reaching $94 in year one due to combined wage hikes and new ground pay formulas. Senior flight attendants could earn $87,000 on average by 2027—with about one-fifth earning more than $90,000—but CUPE negotiators found these terms insufficient.

Flight attendants continue pressing for higher wages as well as pay for currently uncompensated ground duties.

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