A few days ago, I wrote about how Air Canada flight attendants had threatened to go on strike. Well, the strike has officially kicked off, and Air Canada has basically shut down its operations, given that management responded to the strike warning with a lockout notice. Wow.
In this post:
Air Canada flight attendants are now on strike
For quite some time, Air Canada management and the Canadian Union of Public Employees (CUPE), which represents the roughly 10,000 flight attendants at Air Canada and Air Canada Rouge, have been in negotiations over a new contract.
Recently, the two parties reached a dead end — flight attendants voted on a strike authorization, and 99.7% of members voted in favor of industrial action. Unlike in the United States, airline labor groups in Canada actually have the power to go on strike relatively easily, and that’s exactly what we’re seeing right now.
Earlier in the week, CUPE issued a 72-hour strike notice, allowing them to go on strike as of Saturday, August 16, 2025. In response to this, Air Canada issued a lockout notice, to mitigate the strike’s customer impact, and allow the airline to shut down in an orderly manner. That’s exactly what has happened — as of roughly 1AM this morning, Air Canada and Air Canada Rouge have suspended all operations.
Note that Air Canada Express flights operated by Jazz and PAL Airlines will continue to operate as normal. However, those carriers only transport roughly 20% of Air Canada’s daily customers. Air Canada and Air Canada Rouge carry roughly 130,000 passengers per day, who are impacted by this industrial action.
If you’re booked on a canceled Air Canada flight, there a couple of things to note:
- Air Canada claims it will attempt to rebook passengers on flights on other airlines, but good luck actually getting through to an agent, given the volume of travelers who need rebooking, plus the limited capacity on other airlines during a busy summer travel period
- If you are on an itinerary that qualifies for EC261 or UK261 compensation, then you’re entitled to a duty of care and cash compensation, as an airline strike isn’t considered an extraordinary circumstance
Why can’t Air Canada and the union come to an agreement?
Air Canada management claims it has been in eight months of good faith negotiations, including soliciting the help of federal conciliators, and an offer to enter binding arbitration. However, the company has been unable to come to an agreement with the union.
Air Canada emphasizes how on August 11, 2025, it tabled a revised comprehensive proposal, which would’ve seen flight attendants get a 38% pay increase over four years. The offer also addressed the issue of ground pay, improved pensions and benefits, increased crew rest, and more.
Here’s how Air Canada CEO Michael Rousseau describes this:
We regret the impact a disruption will have on our customers, our stakeholders and the communities we serve. However, the disappointing conduct of CUPE’s negotiators and the union’s stated intention to launch a strike puts us in a position where our only responsible course of action is to provide certainty by implementing an orderly suspension of Air Canada’s and Air Canada Rouge’s operations through a lockout. As we have seen elsewhere in our industry with other labour disruptions, unplanned or uncontrolled shutdowns, such as we are now at risk of through a strike, can create chaos for travellers that is far, far worse.
Our latest offer included a 38 per cent increase in total compensation over four years that would have made our flight attendants the best compensated in Canada, along with provisions for ground pay and other work-life balance, career and pension improvements. At the same time, we asked for no concessions from the union. Given this, while we remain available for discussions with CUPE, we have requested government-directed arbitration as we now view it as the only certain avenue to bring closure to bargaining and mitigate the impact on travellers, business and the Canadian economy.
As you’d expect, the union has a very different take. Here’s how union president Wesley Lesosky describes the motivation behind going on strike:
After nine months of the company delaying at the bargaining table on the fundamental issues – unpaid work and poverty wages – the union asked for and received an unprecedented 99.7% strike mandate from its membership. Flight attendants turned out by the hundreds at airports across the country for a powerful showing of solidarity for their August 11 Day of Action.
Air Canada has seen how determined and united flight attendants are to end unpaid work and win a real cost-of-living increase to wages.
Now, Air Canada has decided they no longer want to negotiate. They want to go to arbitration, rather than stay at the bargaining table and bargain a new contract.
Everyone knows the best deals are negotiated at the bargaining table, not handed down by an outside third-party. Then why does Air Canada want the union to agree to arbitration?
First, arbitrators rely on precedent and the status quo to make their determinations. But Air Canada flight attendants are trying to break the status quo by ending the historic abuse of unpaid work in this industry. Air Canada wants an arbitrator to do their dirty work for them to keep the status quo intact.
Second, an arbitrator’s determination would be final. Members would not get a chance to vote on it. Air Canada wants to go to arbitration because they want to take away our members’ democratic voice.
The union has declined the company’s proposal to preserve the exploitative status quo and take away our members’ voice.
The Air Canada Component of CUPE remains at the bargaining table, ready to negotiate.
We have always been available to negotiate. The union was available to continue discussions while it sought a strike mandate – the company never reached out.
Regarding Air Canada’s claim of a 38% pay increase, here’s how the union responds to that:
Meanwhile, on wages, Air Canada’s offer is below market value, below inflation, and below minimum wage.
- Air Canada has offered 8% in the first year as a one-time catch-up. Meanwhile, flight attendants have taken a 9% cut to their real wages due to inflation over the course of their last contract since 2015. This offer does not even keep up with inflation – it is, in effect, a pay cut. Air Canada’s offer is below inflation.
- Air Canada is using misleading “kitchen-sink” figures to make the public believe that flight attendants who rely on food banks and second and third jobs are the ones being greedy. In reality, the company has offered a 17.2% wage increase over four years. Even in year four of Air Canada’s offer, in 2028, Air Canada flight attendants would earn less than competitor airlines in Canada earn today. Air Canada’s offer is below market value.
- Even with the “best offer” that Air Canada can make, an entry-level Air Canada flight attendant working full-time will still earn less than federal minimum wage. Junior Air Canada flight attendants working full-time (75 credit hours per month) currently earn $1,952 per month pre-taxes. With Air Canada’s first-year catch-up increase of 8%, their earnings would increase to $2,108.16 per month. Meanwhile, a worker earning federal minimum wage at $17.75 per hour would earn $2,840.00 per month pre-taxes. Air Canada’s offer is below minimum wage.
Air Canada has posted billions in profits in recent years. They can afford to pay flight attendants fairly without raising costs for the public.
Everyone can draw their own conclusions, but that’s what the two sides are saying…
Bottom line
Air Canada flight attendants have gone on strike as of Saturday, August 16, 2025. For that matter, the airline has locked out flight attendants, deciding it’s not worth trying to operate during a strike. Air Canada management emphasizes how it has offered flight attendants a 38% increase over the course of four years, but the union states that what has been offered doesn’t even keep up with inflation.
It’s anyone’s guess how long this goes on for, but I certainly hope there’s a resolution soon…
How do you see this Air Canada strike situation playing out?
What the flight attendants should fight for is pay starting at scheduled departure time. I would say the average late departure is about 1 hour every flight I tool last year YVR - YYZ. So on these about 4hour trips that would be about 25% right there.
Personally I am on the side of the FA's as they should have the right to bargain and strike. Even though as a consumer it will mean higher fares.
Why can't Air Canda pay their employees more? They can't, or they don't want to?
The service on AC was already bad in the first place. If they are now forced back to you work, I (for one) do not want to be riding on AC metals anytime soon. The cabin crew are one of the coldest and robotic ones. Right after the 4 mainline US carriers
It is a matter of fact that while the weak, woke, liberal Carney, was head of the Bank of England, he did nothing to improve the financial situation in the country. He, along with his liberal pals pretending to be Conservatives, have proven to have been a disaster for Great Britain. Will his time in Canadian political office prove to be equally disastrous for AC? …. One is minded to believe so.
Great Britain’s disaster was self inflicted. Old xenophobic middle class white people voted for Brexit.
Your ignorance is only exceeded by your racist comment Dan …. Desperate Dan, desperate to post something as worthless as your petty EU propaganda machine offering is poor false news old stick!
However, one appreciates this opportunity to slap down any loony remoaner. Thanks for the laugh Desperate Dan …. :-)
Some here may remember that Qantas pulled the same stunt a few years back.
It didn't end well for anyone, Qantas especially. They earned a lot of bad-will from the flying public, their employees and contractors. The effects still linger on as legal cases wind their way through the courts and tribunals.
Is it ever a good move to shoot yourself in the foot?
Kinda cute how the arbitrator picked by the Carney liberals is a former senior executive at Air Canada, who refuses to
recuse herself. Now you know why AC refused to seriously negotiate. The govt had it in the bag for them all along, and screw the employees.
An idle thought I had just now: Suppose the strike lasts for over 5 weeks. (Unlikely, I know, but bear with me.) That would put AC below 80% slot utilization for the summer season, if I'm calculating correctly. Would that create a risk of losing slots at LHR, AMS, CDG, etc.?
I guess a 38% pay raise does ntot go far in Canada as it is very $$$$$$$$$$$$$$$to live there with their Tax rates....
Like Nordic countries Canadian taxes pay for services like garbage collection and healthcare. The tax rate is based on taxable income which for FAs would be rather low so their incremental increase in taxes would not be that high from a raise. Most of the raise would go to the FAs. Pilots make much more so they would be proportionally taxed at higher rates if they got a raise. Taxes may be high relative to...
Like Nordic countries Canadian taxes pay for services like garbage collection and healthcare. The tax rate is based on taxable income which for FAs would be rather low so their incremental increase in taxes would not be that high from a raise. Most of the raise would go to the FAs. Pilots make much more so they would be proportionally taxed at higher rates if they got a raise. Taxes may be high relative to other jurisdictions but getting sick in Canada does not usually result in personal bankruptcy from healthcare costs.
The union probably expected this, while also expecting arbitration to be removed as an option. The NYT reports, "The Teamsters have already challenged the government’s use of arbitration, said . . . a professor of workplace law at York University in Toronto. He predicted that the courts were likely to rule against the government."
Well, that didn't take long.
The government has ordered the FAs back to work and imposed binding arbitration. Exactly what AC wanted.
Liberal party betraying workers yet again
@Ben - Is Air Canada profitable? If the airline is just being a weasel like Kirby at United when they’re making plenty of cash then Air Canada’s behavior is equally reprehensible. If the airline is losing money though then the pretty pathetic offer is a lot more understandable.
Canada (as part of the British empire) abolished slavery in 1834. I hope they now start requiring airlines to pay FAs for groundwork, so that in 30 years FAs in the US will have the same rights.
Good for the F/As. I hope they get everything they’re asking for.
If I was offered a pay rise of 38% over 4 years I would jump at it.Just selfish inviduals who have no idea of economics.
Depends what your wages were before the offer, and what work you're doing, no?
We had three global years of it recently. 38% going forward is optimistic. But notice the tariff impact on import prices in other markets. TYVM. I am buying these crazy values overseas.
Doesn't Canada have compensation rules similar to EU261?
Depends on if a strike is classified as a disruption that the carrier can control (I assume it would), then I believe passengers would be eligible for compensation based on how much of a delay they face getting to their final destination.
Also, good luck to anyone trying to fly another airline out of Canada. It seems all of AA's flights out of YUL, YYZ, and...
Doesn't Canada have compensation rules similar to EU261?
Depends on if a strike is classified as a disruption that the carrier can control (I assume it would), then I believe passengers would be eligible for compensation based on how much of a delay they face getting to their final destination.
Also, good luck to anyone trying to fly another airline out of Canada. It seems all of AA's flights out of YUL, YYZ, and YYC have been full for this entire weekend for the past couple days (I had delays so I was trying to rebook to no avail). I assume it's a similar story at UA, DL, Westjet, etc. Also, last minute fares have skyrocketed because of this.
I'm sure there are many "new canadians" that will be more than willing to cross the picket line and scab. After all that's why the red carpet welcome is given to them in the first place.
"38% pay increase over four years"
Not sure how the union does much better than that.
Yes, it is a low wage for FA's. But I don't think there is a way to boost pay more rapidly than that. Take the 4 years at 10% a year - which I am sure the airline would agree to - and fight again if 4 years.
this is a huge help for US airlines and the smaller Canadian airlines. AC's business plan has long involved siphoning off price conscious international passengers.
This is precisely what WestJet and Porter etc need to establish themselves w/ more credibility.
Heading into the fall, there are plenty of seats that need to be filled before schedules are pulled down.
Even if the AC succeeds in replacing the FA workforce and a large number of FAs...
this is a huge help for US airlines and the smaller Canadian airlines. AC's business plan has long involved siphoning off price conscious international passengers.
This is precisely what WestJet and Porter etc need to establish themselves w/ more credibility.
Heading into the fall, there are plenty of seats that need to be filled before schedules are pulled down.
Even if the AC succeeds in replacing the FA workforce and a large number of FAs return as non-union, many have probably kissed their jobs goodbye. and it will take months to return to full staffing levels
the guy is an expert on AC now. Do we need Ben?
feel free to debate what you believe to be factually inaccurate.
Each of our 4 paragraphs is a snarky assertion of opinion. There are no facts to debate.
As usual.
I withdraw the word "snarky" and stand four-square behind the rest.
Just remember his analysis is “all DL actions good, all OAL ones mediocre to bad”.
DenB, to be taken seriously you will need to put some ‘meat on the table’, the alternative is that you cannot possibly be taken seriously, yes?
For the record, those "smaller Canadian airlines", massively increased their fares the minute a 72-hour strike notice was announced.
How do you think we view their "credibility" now?
Todd,
of course they did. It is supply and demand and Canadians pays the price for Canada's long standing protection of AC.
for all of those that want to argue with me about the benefit to US airlines, USAToday says the expectation is that about 27,000 US passengers are affected each day because of AC's strategy of connecting US passengers from the US to Europe and Asia.
Although UA is a Star Alliance partner...
Todd,
of course they did. It is supply and demand and Canadians pays the price for Canada's long standing protection of AC.
for all of those that want to argue with me about the benefit to US airlines, USAToday says the expectation is that about 27,000 US passengers are affected each day because of AC's strategy of connecting US passengers from the US to Europe and Asia.
Although UA is a Star Alliance partner with AC and will likely be the first choice for AC rebooking, UA does not have that much capacity available. LH Group wlll benefit as well.
They also say
"... northern U.S. airline hubs are likely to see increased traffic as Air Canada passengers to and from overseas destinations get rebooked through American markets."
Guess which US airline has the most northerly set of hubs? None other than DL.
Anyone that can think critically realizes that hubs at SEA, DTW and MSP all are in states next to the Canadian border while BOS is the most northerly east coast hub.
I didn't say that DL would benefit the most but they actually very well may.
This was a long time coming. Re-litigating COVID is not relevant to the strike, @Andrew H. The length of the strike is largely determined by the wealth of CUPE's strike fund. CUPE (Canadian Union of Public Employees) is loaded.
The likely outcome is 7-11 days with no flights, then Federal back-to-work legislation (slow to organize since the House does not sit in summer), then resumption of service under a Federally-imposed temporary contract, then mediation. The...
This was a long time coming. Re-litigating COVID is not relevant to the strike, @Andrew H. The length of the strike is largely determined by the wealth of CUPE's strike fund. CUPE (Canadian Union of Public Employees) is loaded.
The likely outcome is 7-11 days with no flights, then Federal back-to-work legislation (slow to organize since the House does not sit in summer), then resumption of service under a Federally-imposed temporary contract, then mediation. The Union and the Company have likely known and planned for this all along.
@AeroB13a I guess any carrier that serves a Canadian airport will "pick up some business" but AC's busiest routes are domestic so the pickings will be modest. And AC fliers aren't likely to be seduced by US carriers longterm because AC provides Canadian travellers nonstop service to far more US destinations than the US3. Usually a ticket on AA, UA, DL delivers the passenger to the hub-and-spoke of US domestic travel.
What was the reason for inflation?
The printing of money during COVID so of course it's relevant.
It may be inconvenient but it's certainly relevant.
This news affects a total of 4 people worldwide. Who flies Air Canada??
44,800,000 in 2023.
If the flight is cancelled they legally have offer a full refund if there’s no alternate, not a voucher. As it’s a peak travel period the chances of thousands being rebooked is minuscule.
"legally"? I wonder if that's accurate under CANADIAN law, @Icarus.
The CTA imposes heavy penalties if they don’t. If the flight departs the U.K. /EU/USA and most other countries they have to. Moreover it’s also in their own conditions of carriage.
Why is it Air Canada’s problem that the government mismanaged COVID and caused excessive inflation?
The employees at AC benefitted from that money printing to keep their paychecks coming while not flying.
That inflation helped air Canada by raising ticket prices too.
You clearly have zero understanding of basic proft/loss.
The inflation rates in Canada during the pandemic were consistently below those of the US. Not sure what your definition of excessive inflation is based upon. Hundreds of thousands, perhaps millions, in both countries, received money directly or indirectly through government efforts to stabilize the economy and prevent a depression. Having clarified that point, to state that COVID was mismanaged is irrelevant to the discussion of the current work action. Ticket prices in Canada are...
The inflation rates in Canada during the pandemic were consistently below those of the US. Not sure what your definition of excessive inflation is based upon. Hundreds of thousands, perhaps millions, in both countries, received money directly or indirectly through government efforts to stabilize the economy and prevent a depression. Having clarified that point, to state that COVID was mismanaged is irrelevant to the discussion of the current work action. Ticket prices in Canada are hindered by low competition. I am not a fan of Air Canada and their propensity to charge large sums of money for some routes they alone service, nor am I a fan of their levels of service, but COVID has very little to do with either. The key impact of COVID on pricing was when routes were cancelled during COVID and slowly reinstated albeit with higher fares.
The Union head is basing his negotiating on inflation.
The government created that inflation by printing money.
The company did not print that money.
And everything else that AC does has been impacted by inflation.
It's Air Canada's problem because they used it as their excuse to get a nearly 10% reduction in wages out of the flight attendants...and now that inflation has increased and the pandemic is in the rearview mirror, they aren't even offering to pay FAs where they were pre-COVID in the first year of the proposed contract.
Some of us insisted that the Covid lockdowns would have significant, long term impacts and were a catastrophic mistake.
You’re welcome.
If the flight is cancelled, you can get a full refund. The goodwill policy is using future flight credit if you wish to cancel your trip before your flight is cancelled by the airline.
One expects that the lower placed (in the World Rankings) U.S. Airline Companies, will be hoping to pick up some business due to this AC industrial action period. This will come as a period of joy for the DL, UA, AA, etc, fanboys.
Eskimo posted: “Awfully quiet for the alter ego BA apologist”. One took no action by posting a response on the appropriate thread, preferring not to respond to the gross ignorance. It will be fun to see the result …. :-)
Given how terrible Canada is, it is hard to understand why its citizenship isn't jumping at a chance of becoming Americans.
It's the other way around. Canadians are civilized, kind, and don't run around the world exporting gun violence, money worship, racism, and other unique facets of "American" culture.
@Iacanadienne - what a completely uniformed ignorant response. Seems you have quite the Napoleon complex.
Surprised you even know who Napoleon is, you ignorant yank.
@lacanadienne maybe that’s true in your Elbows Up view of the country but I can tell you the last 10 years everything polite or nice of Canadian culture has been destroyed: justice system is two tiered, reverse racism is now prevalent at workplaces and there is just so little inclusion at public events it seems like the country has been taken over by savages. But government doesn’t care it’s part of their plan.
But Canadians do export carbon, so don’t get too righteous. Canada is the world’s largest per capita producers of it, between fossil fuel and mining industries. So Canadians do much more than their part contributing to global warming.
Canada as a nation, may be the target for your contempt mark, however, should you be actually be referring to AC, then you might like to know that they are miles ahead of their southern neighbours in the world rankings.
Oh is Canada bad? Ok. Maybe you should put the trash in the US and focus on biker gangs or oil and, no wait, hold on, no - ok.
Perhaps it is partly because of comments like that.
Canada is a dying craphole.
That is very strong opinion Andy, can you elaborate upon your condemnation?
At the onset of its statehood, Canada chose to remain in the British Commonwealth. Personally, I do not understand why Canada and Australia still remain in British Commonwealth like many other former British colonies, mainly many poor African and Caribbean countries. They should use the money for membership fee to invest in their own countries. As for your derogatory snide and ignorant remark how terrible Canada is, Canada consistently ranks far above the US on...
At the onset of its statehood, Canada chose to remain in the British Commonwealth. Personally, I do not understand why Canada and Australia still remain in British Commonwealth like many other former British colonies, mainly many poor African and Caribbean countries. They should use the money for membership fee to invest in their own countries. As for your derogatory snide and ignorant remark how terrible Canada is, Canada consistently ranks far above the US on all world classifications, such as the top ten best countries to live in or the top ten cities in the world, etc... for decades now. To those who consistently rave the US is the wealthiest and strongest country in the world, it displays a deeply entrenched indoctrination that is perpetrated by US media.
@globetrotter~ 'fees' to remain in the British Commonwealth?
What on earth are you talking about? The Commonwealth is not a franchise like McDonalds et al.
I would however agree that few Canadians would jump at the chance of American citizenship. Who in their right mind would voluntarily jump aboard a sinking ship?
Since there are no flights to operate, do the pilots also go without pay during this time?
No. Every employee who isn’t on strike gets paid.
If a deal or arbitration decision is reached, how long do you think it will take to restart operations? I’m planning to travel on Air Canada during Labor Day and trying to determine the best course of action.
@ Michelle -- I imagine they can restart operations in less than a day, since they gradually suspended operations, so I assume most planes are at hubs, etc. I would hope that this is resolved before Labor Day, but who knows. It's possible that this isn't one continuous strike, and that we see multiple strikes.
I'm booked for a week from now. I've looked up the alternatives and have the preferred one ready to go, but am waiting for my flight to be formally canceled. Once that happens, AC will have to rebook me. If I pull the trigger now, I will get a credit and have to pay for the alternative out of pocket. I suggest that the best course of action is to wait and see at this stage.