(CANADA) Air Canada’s network remains strained after the Canadian Union of Public Employees said its flight attendants will continue striking in open defiance of a federal back-to-work order, extending widespread cancellations into the new week. The standoff—now at the center of a government-ordered arbitration—leaves travelers facing ongoing disruptions even as the airline moves to restart flights.
CUPE launched the strike at 01:00 EDT on August 16, 2025, following a 72-hour notice. Air Canada responded with a lockout notice and suspended more than 700 daily flights, affecting roughly 130,000 passengers per day.
On August 16, Jobs Minister Patty Hajdu directed the Canada Industrial Relations Board to impose final binding arbitration and ordered both Air Canada and CUPE to resume operations by 14:00 EDT on August 17. Despite that order, CUPE National President Mark Hancock said on August 17 that flight attendants would stay on strike, calling the process “unfair” and urging the airline to return to talks.
Government order, arbitration and union response
The Canada Industrial Relations Board extended the expired collective agreement (which lapsed on March 31, 2025) until a new deal is reached and mandated binding arbitration to settle the remaining issues.
The government says it acted to:
– “Maintain stability and supply chains”
– “Safeguard Canadians” during the busy summer travel season
VisaVerge.com reports the intervention mirrors earlier federal moves to limit major transport strikes when the economy and public travel are at risk.
CUPE, which represents more than 10,000 flight attendants at Air Canada and Air Canada Rouge, has rejected both the back-to-work instruction and the arbitration path. The union has planned a “day of action” with demonstrations at major airports in Toronto, Montreal, Vancouver, and Calgary, and invited Air Canada back to the table. Local leaders, including Montreal’s Natasha Stea, have signaled support for continued defiance.
Key union demands and arguments:
– Compensation for unpaid ground time (boarding, deplaning, and time between flights)
– Better wages and working conditions
– Ground time described as vital work that should be compensated
Air Canada’s position and offer:
– Proposed a 38% compensation increase over four years, including partial ground pay, improved pensions, and more crew rest
– Says the proposal would lift cabin crew hourly rates to CA$94 in the first year
– Projects senior flight attendants could earn up to CA$90,000 annually by 2027
– States it pursued government-directed arbitration after talks with federal conciliators failed over eight months
– Issued the lockout notice to limit uncertainty for customers and says it remains committed to negotiating a renewal with CUPE
Passenger impact and what to expect
Air Canada began a gradual restart on August 17, but warned it will take several days to stabilize schedules. Travelers should expect rolling cancellations and last-minute changes as planes, crew, and gates are repositioned.
Important traveler guidance:
– Do not go to the airport unless you have a confirmed booking
– Prepare for longer wait times for customer service
– Use the airline’s official tools for flight status and rebooking
Quick facts for passengers:
– More than 700 flights were canceled during the strike’s first waves, with more disruptions likely during ramp-up
– Over 100,000 passengers have been stranded or forced to find alternatives across multiple days
– Air Canada Express flights operated by Jazz and PAL are not affected
Rebooking and refunds (key dates and rules):
– For travel between August 15–19, 2025, Air Canada is allowing free changes to new travel dates between August 21–September 12, 2025
– Full refunds are available for unused tickets bought on or before August 15 for travel between August 16–17, 2025
– Use the airline’s official tools for flight status and rebooking and avoid the airport unless your flight shows confirmed
Passenger rights note:
– Under Canada’s Airline Passenger Protection Regulations, airlines are not required to pay compensation for delays or cancellations caused by labor disruptions.
– Passengers can seek rebooking or a refund, but should not expect cash compensation for incidentals (meals, hotels) tied directly to the strike.
Wider stakes and next steps
For CUPE, the dispute is about reshaping how flight attendants’ work is valued—particularly hours on the ground that the union says are essential to safety and service but often unpaid. For Air Canada, the priority is settling a contract that raises pay and rest while keeping the network workable and costs predictable.
The government’s move to order binding arbitration—under Section 107 of the Canada Labour Code—places the dispute in a legal channel designed to prevent prolonged national disruptions. The Canada Industrial Relations Board is set to oversee the process in the coming days and weeks. The board’s official information is available on the Government of Canada website: https://www.canada.ca/en/industrial-relations-board.
Industry implications and perspectives:
– The outcome could shape future bargaining across Canada’s airline sector, influencing expectations around ground pay and scheduling
– Many labor analysts view Ottawa’s step as consistent with past responses to major transportation strikes, prioritizing economic stability and the public interest
– Union advocates say mandatory arbitration limits workers’ right to strike and weakens collective bargaining power
Operational outlook:
– Air Canada expects several days to restore normal operations
– The airline will likely continue canceling and consolidating flights as it rebuilds crews and aircraft rotations
– Travelers should check reservations frequently and act quickly when change options appear
– Families, business travelers, and seasonal visitors may be especially impacted where alternate routes are scarce or fully booked
Legal and political risks:
– CUPE’s continued defiance could invite more legal and political pressure, including tougher enforcement if the strike persists
– The union has signaled readiness for public demonstrations and frames the dispute as a test of fairness for front-line workers
Practical tips for affected passengers:
1. Check your booking frequently via official Air Canada channels.
2. Rebook online where possible to avoid long phone wait times.
3. Keep records and receipts for any expenses—document all communications.
4. Expect a choppy, stop-start recovery while arbitration proceeds.
Both sides say they’re open to a deal, but they remain far apart on how to value time worked on the ground. With arbitration now in play, the timeline is no longer in the parties’ hands.
As operations ramp up, the reality is simple: some flights will run, and some won’t, until crews return in full and the arbitration produces a path forward. Travelers should keep an eye on their bookings, use official channels, and expect disruptions while Air Canada and CUPE await the next steps in the arbitration process.
This Article in a Nutshell
Air Canada’s network faced severe disruption after CUPE strikes began August 16, 2025. Government ordered binding arbitration August 17. Thousands of flights canceled, 130,000 passengers affected daily. Air Canada proposed a 38% pay increase over four years; CUPE rejects arbitration, demands paid ground time. Travelers should confirm bookings and expect ongoing schedule instability.
