Air Canada is set to gradually resume its flight operations today, August 19, 2025, following a breakthrough in labor negotiations that ended a disruptive strike by its flight attendants. The strike, which began on August 16, resulted in the cancellation of around 700 daily flights and left approximately 130,000 passengers stranded during one of the busiest travel periods of the year.
The work stoppage was primarily sparked by disputes over compensation for flight attendants, especially regarding pay for duties performed while aircraft are on the ground—a point the Canadian Union of Public Employees (CUPE), representing the attendants, insisted was inadequately addressed in contract talks. The union also raised concerns about unpaid work involved in boarding passengers. Flight attendants currently receive remuneration only for time spent in the air.
The labor disruption had significant immediate effects, forcing Air Canada to halt its Air Canada and Air Canada Rouge operations entirely for several days. The Canadian Industrial Relations Board (CIRB) declared the strike illegal and ordered the union to return to work, imposing binding arbitration to settle remaining collective agreement details. However, CUPE initially defied this directive, prolonging the disruption and forcing the airline to suspend plans to resume limited flying.
After intensive mediated negotiations, a tentative agreement was reached, ending the strike and allowing Air Canada to commence a gradual restart of flight services. The agreement notably addresses the union’s core demand by providing compensation for ground-time work carried out by flight attendants. CUPE publicly confirmed the strike’s conclusion, urging members to fully assist with the resumption of operations. Air Canada welcomed the settlement, emphasizing their commitment to restoring normal service while expressing regret over the hardship caused to its customers and stakeholders during the strike.
The airline’s CEO, Michael Rousseau, signaled optimism for a swift resolution, highlighting that the proposed salary increase coupled with the newly agreed terms would position Air Canada flight attendants among the best compensated in Canada. Specifically, the proposed deal includes an overall pay raise of 38% over a four-year period, which was a major step forward from earlier stalled negotiations where the union felt the airline’s offers were insufficient given inflationary pressures.
Government officials played a key role throughout the dispute. Labour Minister Patty Hajdu pressed for rapid dialogue and potential government mediation to prevent extended disruptions. Prime Minister Mark Carney also called for fair compensation for flight attendants and stressed the importance of a quick resolution given the scale of passenger inconvenience. The government scrutinized airline labor practices, particularly around unpaid ground work, signaling increased regulatory attention.
The strike’s impact extended beyond travelers inconvenienced by flight cancellations. Many passengers faced extended stays away from home, significant financial losses, and logistical challenges. One notable example was a Montreal resident stranded overseas who missed the start of a new job due to flight cancellations and experienced minimal support from the airline during the ordeal. The strike also drew expressions of solidarity from other unions and pilots, with some pledging readiness to escalate labor actions in support if necessary.
Despite the strike’s official end, Air Canada warned that a full return to pre-strike operational levels might take up to a week or ten days. This timeline reflects the considerable backlog of disrupted schedules, the need for aircraft and crew members to be redeployed, and ongoing operational complexities.
In conclusion, the resolution of the Air Canada flight attendants’ strike marks a significant labor victory for the union, ensuring better pay and recognition for ground duties, while also allowing the airline to cautiously return to service after days of paralyzed operations. The mediated settlement highlights the importance of balanced negotiations between labor and management in critical infrastructure sectors like air travel and underscores the wider economic and social ripple effects of such industrial actions.