Over 10,000 Air Canada flight attendants, represented by the Canadian Union of Public Employees (CUPE), ended their strike on August 16, 2025, after the Canadian federal government invoked Section 107 of the Canada Labour Code. Federal Jobs Minister Patty Hajdu directed the Canada Industrial Relations Board to impose binding arbitration, compelling both parties to resolve their contract dispute.
The strike, which began early on August 16, 2025, led to the grounding of all Air Canada and Air Canada Rouge flights, impacting approximately 130,000 passengers daily. The dispute centered on wages and compensation for ground duties, with CUPE rejecting Air Canada's offer of a 38% total compensation increase over four years, citing inflation and gender inequality concerns. The union sought compensation for all hours worked, including pre- and post-flight ground time. The government's intervention aims to restore industrial peace and protect national economic interests, marking the first strike by Air Canada flight attendants since 1985. While the arbitration provides a path forward, CUPE representatives have expressed concerns that the government's action could interfere with the bargaining process and potentially curtail workers' rights.
Air Canada has begun a phased wind-down of its operations to facilitate the resumption of services. Affected passengers are advised to check the airline's website for updates on rebooking or refunds. The situation underscores the ongoing tension between labor rights, economic stability, and the provision of essential services in the airline industry.