Government Forces Air Canada and Union to Resume Negotiations Amid Ongoing Strike

Mon Aug 18 2025 13:28:56 GMT+0300 (Eastern European Summer Time)
Government Forces Air Canada and Union to Resume Negotiations Amid Ongoing Strike

Canadian government intervenes in Air Canada strike to mandate negotiations as flight disruptions escalate.


The Canadian government has stepped in to resolve the escalating Air Canada strike affecting thousands of passengers by mandating binding arbitration between the airline and its flight attendants' union.



The Canadian government has taken action to mediate the ongoing strike at Air Canada, which erupted over the weekend, resulting in significant flight cancellations. Jobs Minister Patty Hajdu has mandated both Air Canada and the Canadian Union of Public Employees (Cupe), representing over 10,000 flight attendants, to return to negotiations. The airline's operational status has severely deteriorated, with approximately 500 flights disrupted daily due to the labor dispute.

Minister Hajdu emphasized the need for stability in the transportation sector and supply chains due to the strike's impact—calling it an essential intervention after observing that significant governmental support had not led to a timely resolution between the airline and the union. "These parties have been unable to resolve their differences in a timely manner," Hajdu stated, referencing Section 107 of the Canada Labour Code to enforce the arbitration.

As affected parties maneuver through the uncertainty, Air Canada has announced the suspension of all flights, including those operated by their budget airline Air Canada Rouge. The airline advised passengers not to head to airports unless they are booked on another carrier, significantly disrupting travel plans for an estimated 130,000 passengers daily.

The strike, initiated just after midnight EDT on Saturday, comes as flight attendants demand higher pay and compensation for time spent working on the ground. While Air Canada proposed a 38% salary increase over four years, the union deemed this offer insufficient, claiming it remains below inflation, market value, and even minimum wage rates.

Cupe criticized the government's intervention, voicing concerns that the Liberal Party was infringing upon their charter rights and expressing their dissatisfaction with what they termed a "terrible precedent." Following a strong strike authorization vote earlier this month, where 99.7% of union employees supported the action, Cupe had been pushing for negotiations they believe were conducted in good faith. The union stated, "Air Canada didn't come to the table in good faith."

With the continuance of negotiations mandated by the government, the outcome remains uncertain as both parties prepare to address the concerns and demands that have led to this significant service disruption.

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