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Business - August 16, 2025

Air Canada Strike Leaves Thousands Stranded Worldwide: Union and Airline Remain at Odds Over Wages and Working Conditions

Air Canada halts operations following a nationwide strike by over 10,000 flight attendants, causing disruptions for travelers worldwide during the busy summer travel season. The strike commenced after negotiations failed to produce a deal, with the Canadian Union of Public Employees (CUPE) confirming the action and the airline announcing its decision to suspend operations shortly thereafter.

The prolonged contract dispute between Canada’s largest carrier and the union representing 10,000 flight attendants intensified on Friday, as the union declined Air Canada’s proposal for government-directed arbitration. This move preserved their right to strike and allowed for a third-party mediator to determine contract terms instead.

The walkout by flight attendants occurred around 1 a.m. ET on Saturday, coinciding with Air Canada initiating measures to lock out flight staff from airports. Federal Jobs Minister Patty Hajdu convened meetings between the airline and union on Friday night, urging both parties to intensify their efforts towards reaching a resolution.

In a statement posted on social media, Hajdu expressed concern over the slow progress made during negotiations: “It is unacceptable that so little headway has been achieved. The public is relying heavily on both parties to put forth their utmost effort.”

Earlier in the day, CUPE stated they had participated in mediation discussions with Hajdu and Air Canada representatives. In an email, the union asserted its readiness to continue negotiations—despite a lack of counteroffers from Air Canada since Tuesday. “CUPE is here to negotiate a deal, not go on strike,” the statement read.

The complete shutdown of operations will affect approximately 130,000 individuals daily and may result in about 25,000 Canadians being stranded abroad. Air Canada operates around 700 flights per day.

Montreal resident Alex Laroche, 21, and his girlfriend had been saving since Christmas for their European vacation. The potential cancellation of their nonrefundable lodging and $8,000 trip due to the strike has left them in a precarious position as they await updates from Air Canada regarding their Saturday night flight to Nice, France.

The duration of the airline’s planes being grounded remains uncertain, but Air Canada Chief Operating Officer Mark Nasr suggested it could take up to a week for operations to fully resume once a tentative agreement is reached. Passengers affected by the disruption can request refunds through the airline’s website or mobile app, according to Air Canada.

The company will also offer alternative travel options via other Canadian and foreign airlines when feasible. However, they warned that immediate rebooking may not be possible due to full flights on other carriers caused by the summer travel peak.

Laroche considered booking new flights with another carrier but found most of them nearly fully booked and significantly more expensive than their original tickets (approximately double the $3,000 they paid).

“At this point, it’s just a waiting game,” Laroche said. Initially upset about the union’s decision to strike, Laroche expressed understanding upon learning about the central issues in contract negotiations, particularly wages. “Their wage is barely livable,” he acknowledged.

Air Canada and CUPE have been engaged in contract discussions for around eight months but have yet to reach a tentative agreement. Both parties remain far apart on key points such as salary and unpaid work flight attendants perform during ground time. Air Canada’s latest offer included a 38% increase in total compensation over four years, which they claimed would make their flight attendants the best-compensated in Canada. However, the union disagreed, asserting that the proposed 8% raise in the first year was insufficient due to inflation.