Yesterday, Air Canada canceled all flights, amid a contract dispute between management and the union. Flight attendants issued a strike warning, and the airline responded with a lockout warning, which caused all Air Canada and Air Canada Rouge flights to be canceled, with no end in sight.
There’s already an update — this strike won’t last much longer than a day, as the Canadian government is forcing flight attendants to return to work.
In this post:
Canadian government forces Air Canada arbitration
Patty Hajdu, Canada’s Minister of Jobs and Families, is forcing Air Canada flight attendants to return to work. Specifically, she’s calling on Air Canada management and the Canadian Union of Public Employees (CUPE) to enter binding arbitration with the Canadian Industrial Relations Board.
This is being done as Hajdu exercises her authorities under section 107 of the Canada Labour Code, “because it is critical to maintaining and securing industrial peace, protecting Canadians and promoting conditions to resolve the dispute.”
It’s worth noting that this is something that Air Canada management was calling for, while the union vehemently opposed it, arguing that binding arbitration doesn’t allow union members to vote on a new contract, so it takes the democracy out of their collective bargaining.
As Hajdu explains, “the government firmly believes that the best deals are reached by the parties at the bargaining table,” and “it has now become clear that this dispute won’t be resolved at the table.”
Why is she stepping in to stop the strike? Hajdu argues that “Canadians are increasingly finding themselves in very difficult situations and the strike is rapidly impacting the Canadian economy,” and that “flight attendants play a critical role in keeping Canadian families and workers safe as they travel.”
Flight attendant union furious with this decision
The flight attendant union opposes binding arbitration, and is angry at the government for its actions, arguing that “the Liberal government is rewarding Air Canada’s refusal to negotiate fairly by giving them exactly what they wanted.” Here’s what Wesley Lesosky, President of Air Canada’s CUPE, had to say:
“The Liberals have talked out of both sides of their mouths. They said the best place for this is at the bargaining table. They refused to correct this historic injustice through legislation. Now, when we’re at the bargaining table with an obstinate employer, the Liberals are violating our Charter rights to take job action and give Air Canada exactly what they want — hours and hours of unpaid labour from underpaid flight attendants, while the company pulls in sky-high profits and extraordinary executive compensation.”
The union argues that this sets a terrible precedent, and that contrary to the government’s claims, this will not ensure labor peace at Air Canada. In a previous post, I talked a bit about what’s at the heart of this labor dispute, and how the two parties can’t see eye-to-eye.
Air Canada’s plan to gradually resume flights
Air Canada and Air Canada Rouge plan to gradually resume flights as of today, Sunday, August 17, 2025. The airline has been directed to resume operations as of 2PM EDT today.
However, given that some crews are out of place, Air Canada expects that it will take several days before its operations return to normal. During this process, some flights will be canceled over the next 7-10 days, until the schedule is stabilized.
My take on the evolution of Air Canada’s labor dispute
A couple of thoughts come to mind about this situation. First of all, I have to imagine that flight attendants won’t be overjoyed about being forced to return to work, so I suspect service won’t consistently be that friendly in the coming days and weeks. For that matter, one wonders if there might be a higher percentage of “sick” flight attendants than usual.
Second of all, I just find the reality of labor negotiations to often be so frustrating, and this is the prime example of that. This isn’t about whether management or the union are more in the right. Instead, if the government is going to compel flight attendants to return to work and not allow them to strike, then why not do that before they actually go on strike, rather than a day in?
Not only were tens of thousands of passengers stranded yesterday, but presumably many people have already changed their travel plans over the coming days, in anticipation of this dragging on. For that matter, it will take days for the schedule to be fully restored.
If the government thinks aviation is too important to allow for strikes, and if forced arbitration is going to be the outcome, why not acknowledge that before the impacts are felt by the traveling public? It’s not like the government only realized after the strike started that Air Canada shutting down would have an impact on the economy…
Bottom line
Air Canada flight attendants are being forced to return to work, as the Canadian government has decided that the flight attendant union and Air Canada must enter binding arbitration. This is what management wanted, while it’s something that the union opposed.
Air Canada will gradually resume operations as of 2PM EDT today (Sunday), though expect some operational disruptions for days to come. And that assumes that Air Canada flight attendants all actually return to work as they’re being told to do.
What do you make of this update to the Air Canada strike?
Mark Carney and the Canadian government are a bunch of bullies
OK, now US customs/immigration is to blame to for Canadians stranded because of the Air Canada strike.
There are stories being told by Canadians who, stranded in Europe or the UK, have returned to Canada by the only routes available. These routes often require a transit/connection through a US airport. The stories coming from the Canadian travellers describe their experiences at US security points during the connection. The interactions are universally negative and include agents taking multiple photographs, conducting invasive searches, and just being generally nasty. These travellers are not entering the...
There are stories being told by Canadians who, stranded in Europe or the UK, have returned to Canada by the only routes available. These routes often require a transit/connection through a US airport. The stories coming from the Canadian travellers describe their experiences at US security points during the connection. The interactions are universally negative and include agents taking multiple photographs, conducting invasive searches, and just being generally nasty. These travellers are not entering the US. The transiting individuals will only briefly set foot in the American airport and have no desire or intention to visit the US city they are transiting through. At most they may buy a meal or a coffee at the airport. They are just trying to get home. These negative interactions have caused a further backlash against travel to the US.
if you clear US immigration and customs which you have to do since the US generally does not have sterile in-transit facilities, you are entering the US.
Doesn't justify any actions by anyone but it is factually incorrect to say that someone isn't entering the US, even for a minute.
and, as I said, US airlines are benefitting from this mess and will as long as AC FAs decide to stay off the job.
@Dan - You are simply making this up. While a few people might claim this... and claim being the operative word... millions enter every day with no problem.
I look forward to seeing what the final 2025 tourism numbers are for Florida, Vegas and Arizona.
This Canadian government has always acted very much as a dictorial power protecting incumbents and special interests.
It’s interesting that this minister (hajdu) also ordered the lockdowns in Covid too. She seems pretty happy to override every Canadian’s civil and collective bargaining rights. She belongs in jail for that corruption and violation of basic civil rights of Canadians.
Another update is needed - the Union has announced that they're refusing the order and will remain on strike
Really?!?
Source?
Would the CBC, Canada's national broadcaster, work? https://www.cbc.ca/news/canada/air-canada-flights-sunday-1.7611078
if they are going to strike - which they did - then they have to be prepared to carry it through to the end.
As I stated before, there is a real potential for AC to have to rebuild their workforce and airline and many of the striking FAs to never go to work at AC again
You are delusional.
It would take months to train and hire 10000 FAs, especially for the pittance they pay, and the general culture of this company of disdain for its employees while paying exec bonuses.
The union lost me as soon as they started with "The Liberals". Are they forgetting it was the same "Liberals" who bailed them out during the pandemic? The same Liberals who paid 75% of your employees wages! The same Liberals who constantly protect the airline from competition?
The govt ministers, current and past, doesn't matter whether blue or red, belong to the same country club as AC management.
AC should have failed multiple times in the past.
I assume all the unions fanatically supported the socialist party during the last elections. So no problem, they get what they voted for. Communism and dictatorship.
That is a big step linking Mark Carney to Joesph Stalin. That is the same as people in the US with TDS linking Donald Trump to fascism.
"if the government is going to compel flight attendants to return to work and not allow them to strike, then why not do that before they actually go on strike, rather than a day in?"
@Ben: Long story short, striking is a constitutionally-recognized right in Canada, and it's legally questionable whether the Labor Code can be used to pre-emptively prevent a strike before it happens. However the government has been loopholing around this by ordering...
"if the government is going to compel flight attendants to return to work and not allow them to strike, then why not do that before they actually go on strike, rather than a day in?"
@Ben: Long story short, striking is a constitutionally-recognized right in Canada, and it's legally questionable whether the Labor Code can be used to pre-emptively prevent a strike before it happens. However the government has been loopholing around this by ordering a strike to end shortly after it starts, with this case and also one involving the Teamsters last year. The latter is currently being challenged in court.
In the US, Biden ordered the railroad strike to end at the beginning of his term. No govt wants a systemically important company to grind to a halt. That is the fastest way to lose the public's support.
Nothing more beautiful than watching a greedy union and a corrupt liberal gov't go "elbows up" against each other.
Sorta like Harper(C) bailed out AC with billions of taxpayer money.
I’m gonna go to my job tomorrow and demand an almost 40% pay raise also. Can’t wait to see how it goes.
Imagine going to a job where your employer is the one offering almost a 40% raise, denying it and asking for more!
No one can predict what will operate and when so other Canadian and US airlines will benefit for a good week.
Canada has coddled Air Canada for so long to grow so large that labor processes don't work any more.
It is a very short term hit on AC. I doubt that a US administration would allow one of the big 4 US airlines to grind to a halt either without intervening.
first, AC carries a much higher percentage of Canadian traffic than any of the 4 big 4.
and second, US labor laws under the RLA probably would not have permitted a strike in the first place.
UPS has the largest private sector union in the US and the company did cough up alot of money to prevent a walkout. Most of their drivers and package handlers are not governed by the RLA
and the revenue impact to AC is estimated to be C$50-60 million/day and might approach C$300/day in the early days as the company has to pay customer compensation as well as salaries of other employees that are needed to get passengers on other airlines
Air Canada has had all governments in its pocket. Cons approving monopoly takeover of Canadian, the Cons bailouts of 2008/9 when AC should have gone bankrupt, the Liberals again legislating back to work, the continous subsidies by not allowing ME3 into Canada.
There is not a more deplorable, unethical, scum corporation in Canada.
The flight attendants have a right to earn a proper paycheck. What they don't have the right to do is disrupt everyone's lives in order to get one. No one forced them to seek employment at Air Canada.
It’s in their CBA and what they are doing is legal in Canada, so whether it’s “the right thing to do” or not is debatable, but they most certainly have every right to strike.
The Liberal govt in Canada has been a puppet on a string controlled by Air Canada. The pathetic " Air Passenger's Rights" legislation is another example of AC ability to control the govt.
Any loss for a union is a win for customers.
Only someone who works hard at being ignorant and stupid can possibly think so. I suggest that you take a moment to educate yourself on the fight unions have fought, that provides us with things we now take for granted. I'll give you two examples:
Paid vacation
5 day work week.
Historically, yes, unions have been important. In modern times, they serve little purpose than to demand excessive pay and protect the lowest performers in the ranks.
Entitled Lance who is proud of his MBA
Tells everyone he has a MBA
When on a first date one of the first things he says is he has a MBA
All you anti union people enjoy working 60 hour work weeks with 2 weeks vacation and 1 day of mat leave, all so that your corporate overlord can fire you at their whim.
Thank you TrumpGambit! The entitled crowd that wants Western Euro labor Laws needs to move there and be apart of their stagnant/shrinking economies!
You pro union people need a new schtick.
Just like everything else, the labor markets would have evolved and the balance of power would have shifted.
As Lance correctly states…unions stifle ambition and protect the lowest common denominator.
@Andrew H,
We are all born ignorant, true. It takes quite a level of effort for people like you to remain willfully stupid.
Give one example when the balance of power has ever shifted.