Airliner Air Canada halts all services due to a flight attendant strike; government intervenes, proposing mediation
The bitter contract dispute between Air Canada and the Canadian Union of Public Employees (CUPE), representing flight attendants, came to an end on August 19, 2025, following nine hours of mediated talks. The strike, which began on August 15, had disrupted flights for over a week, affecting more than 130,000 people daily.
The union had initiated the strike after contract talks stalled, leading Air Canada to respond with a lockout notice and extensive flight cancellations, including all 700 flights on August 16. The union had rejected arbitration, seeking better wage parity with competitors such as Air Transat. Air Canada's offer included a 38% increase in total compensation over four years, with an 8% first-year raise, improvements in ground pay, health benefits, and pension plans, aiming to make Air Canada flight attendants the best compensated in Canada.
However, the union considered the proposed 8% raise inadequate due to inflation. The latest offer from Air Canada was made in anticipation of the strike, with Air Canada's planes grounded for up to a week once a tentative deal was reached.
The strike stranded more than 100,000 travelers around the world, with around 25,000 Canadians stranded abroad each day. Passengers were advised to only arrive at airports with confirmed bookings and offered flexible refund or credit options for affected travelers.
Given the strike ended August 19 and normal flight operations resumed by August 21, the impact on Air Canada's flights lasted roughly one week, from mid-August to shortly after the agreement was reached. The 10,000 flight attendants will return to work soon, marking the first time Air Canada's flight attendants have gone on strike since 1985.
The full resumption of services could take days, according to the Canada Industrial Relations Board. The Business Council of Canada had urged the government to impose binding arbitration in this case, similar to what was done with Canada's two major railroads last year. However, the parties were not closer to resolving key issues and needed help from an arbitrator.
The strike occurred during the peak summer travel season, making it a significant disruption for many travellers. Despite the resolution, the impact of the strike is expected to bring significant changes to the industry. Passengers whose travel is impacted can request a full refund on the airline's website or mobile app.
The business news regarding Air Canada's dispute with its flight attendances union, CUPE, significantly impacted lifestyle choices, causing extended travel disruptions that affected around 130,000 people daily. The strike resulted in political debates about whether the government should intervene with binding arbitration, echoing similar action taken with Canada's two major railroads in the previous year. In general news, the resolution of the strike might lead to future changes in the travel and airline industry.
