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.