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Politics - August 17, 2025

Air Canada Strike Continues: Union Defies Return-to-Work Order Amidst Ongoing Contract Dispute

Air Canada has postponed its plans to resume operations following a union representing 10,000 flight attendants announcing their intention to disregard a directive for return to work. This strike disrupts approximately 130,000 travelers daily during the peak summer travel season.

The Canada Industrial Relations Board mandated that airline staff return to duty by 2 p.m. on Sunday, after government intervention and Air Canada’s statement indicating a planned resumption of flights later in the day. However, the carrier now aims for a restart on Monday evening.

In a statement, Air Canada alleges the union has breached legal requirements by instructing its flight attendant members to disobey the Canadian Industrial Relations Board’s directive. Mark Hancock, President of the Canadian Union of Public Employees, stated outside Toronto’s Pearson International Airport that “our members are not going back to work.”

The federal government has yet to comment on the union’s decision to persist with the strike. Hancock asserted that the process has been unfair and vowed to contest what he deemed an unconstitutional order.

Hancock accused Air Canada of refusing to negotiate in good faith, stating that the airline expected government intervention to resolve the dispute. The country’s largest airline initially announced early Sunday that operations would resume later in the day but warned it may take several days for normal service to be restored, with some flights being canceled over the next seven to 10 days until the schedule stabilizes.

Federal Jobs Minister Patty Hajdu ordered the 10,000 flight attendants back to work on Sunday, emphasizing the unfavorable timing for economic disruption and noting the significant tariffs imposed by the U.S. Hajdu referred the work stoppage to the Canada Industrial Relations Board.

The CIRB has extended the term of the existing collective agreement until a new one is determined by an arbitrator. The shutdown of Canada’s largest airline, which began early Saturday, affects around 130,000 people daily. Air Canada operates approximately 700 flights per day.

Flight attendants went on strike around 1 a.m. EDT on Saturday, at the same time Air Canada initiated lockouts of flight attendants at airports. The bitter contract dispute escalated on Friday as the union rejected Air Canada’s previous proposal for government-directed arbitration, which allows a third-party mediator to determine the terms of a new contract.

Last year, the government compelled Canada’s two major railroads into arbitration with their labor union during a work stoppage. The union for the rail workers is currently suing, arguing the government is removing union leverage in negotiations.

The Business Council of Canada and the Canadian Chamber of Commerce have advocated for binding arbitration in this case. Passengers whose flights are impacted will be eligible to request refunds on Air Canada’s website or mobile app, according to the airline. Alternative travel options through other Canadian and foreign airlines will also be offered when available, although immediate rebooking cannot be guaranteed due to high demand during the summer travel peak.

Air Canada and CUPE have been engaged in contract negotiations for approximately eight months but have yet to reach a tentative agreement. Both parties have stated they remain substantially apart on issues such as pay and unpaid work flight attendants perform when planes are grounded. Air Canada’s latest offer included a 38% increase in total compensation, including benefits and pensions, over four years, which it claimed would make flight attendants the best compensated in Canada. However, the union contends that the proposed 8% wage increase in the first year falls short due to inflation.