Government initiates steps to halt Air Canada work stoppage, opts for compulsory mediation
Air Canada's long-standing strike by cabin crew members has come to an end, following the implementation of binding arbitration by the Canadian government. The Canada Industrial Relations Board (CIRB) enforced the return-to-work order on August 17, 2025, marking the end of the strike that began earlier this year.
The root of the dispute centred around the compensation for flight attendants. As it currently stands, they are only compensated when their plane is in motion. However, the Canadian Union of Public Employees (CUPE) has been advocating for changes, seeking compensation for time spent on the ground between flights, as well as time spent helping passengers board.
In response, Air Canada proposed a 38% increase in total compensation for flight attendants over four years, with an initial 25% increase in the first year. However, the union finds this increase insufficient, expressing dissatisfaction with the proposed terms.
Despite the initial defiance of the return-to-work order, both parties announced a tentative mediated settlement on August 19. This settlement allows for the gradual resumption of flights while the agreement is subject to ratification by union members.
The arbitration process remains in place to resolve the outstanding contract terms, but the mediated agreement suggests significant progress toward final resolution. The exact details of any changes in compensation for time spent on the ground or helping passengers board have not been disclosed.
Air Canada expects to resume full operations in 4 to 5 days, assuming the board grants the government's request. This development brings hope for both the airline and its passengers, as normal flight operations are slowly returning.
[1] Government of Canada. (2025). Order in Council P.C. 2025-814. Ottawa, ON: Government of Canada. [2] Canadian Industrial Relations Board. (2025). Order No. 25-123. Ottawa, ON: Canadian Industrial Relations Board. [3] Air Canada. (2025). News Release: Tentative Agreement Reached in Mediation. Toronto, ON: Air Canada. [4] Canadian Union of Public Employees. (2025). News Release: Tentative Agreement Reached in Mediation. Ottawa, ON: Canadian Union of Public Employees.
- The end of the Air Canada strike, following the government's implementation of binding arbitration, has significant implications for the business and finance sectors, as the airline's operations directly impact the transportation industry's overall performance and consumer confidence in general-news.
- The ongoing negotiations between Air Canada and the Canadian Union of Public Employees (CUPE) stem from a dispute over flight attendants' compensation, which also has repercussions for politics, as unions' demands for fair wages and working conditions can influence public opinion and vote patterns.
- The tentative agreement reached in mediation between Air Canada and CUPE concerning flight attendants' compensation, while specific details remain undisclosed, may set a precedent for other businesses within the transportation and finance industries, as employees seek fairer compensation that accounts for time spent on the ground and assisting passengers.
