Canada’s largest airline, Air Canada, has found itself at the center of a major labor standoff as more than 10,000 flight attendants—represented by the Canadian Union of Public Employees (CUPE)—continue their strike in open defiance of a federal back-to-work order. The walkout, which began in the early hours of August 16, 2025, has now entered its third day, grounding hundreds of flights and upending travel plans for an estimated 500,000 customers since it began. According to The Canadian Press, the Canada Industrial Relations Board (CIRB) officially declared the strike illegal on August 18 and ordered both the union and its members to return to work by noon that day. But CUPE’s leadership has made it clear: the picket lines are not coming down any time soon.
"We will not be returning to the skies this afternoon," CUPE national president Mark Hancock told reporters at a press conference held just after the CIRB deadline had passed. "If it means folks like me going to jail, then so be it. If it means our union being fined, then so be it. We're looking for a solution here, our members want a solution here. But that solution has to be found at a bargaining table." (BBC)
CUPE’s stance is rooted in a broader fight over the right to collective bargaining. The union has accused the federal government of repeatedly undermining labor rights by invoking Section 107 of the Canada Labour Code, which forces parties into binding arbitration and effectively cuts off the right to strike. This tool has been used before, notably with port and railway workers, and has become a flashpoint in Canada’s ongoing labor relations debates.
Prime Minister Mark Carney, speaking to reporters in Ottawa on August 18, expressed his disappointment that the two sides had failed to reach an agreement after eight months of negotiations. "We are in a situation where literally hundreds of thousands of Canadians and visitors to our country are being disrupted by this action," Carney said. "I urge both parties to resolve this as quickly as possible." (CBC) He added that it was important flight attendants are "compensated equitably at all times," but emphasized the need for an urgent resolution to restore normalcy for travelers.
Air Canada, for its part, has repeatedly stated its intention to resume flights, at first hoping to restart operations on Sunday, August 17, and then pushing the target to Monday evening after the union refused to comply. As of Monday afternoon, the airline’s website still showed its operations as suspended. The company estimates that the strike is affecting about 130,000 travelers every day during the peak summer season, with a total of around 500,000 passengers impacted since the walkout began. (NDTV)
The CIRB, an independent tribunal tasked with interpreting and applying Canada’s labor laws, issued a written decision on August 18 instructing the union to immediately notify all members to return to work. The board’s directive also explicitly ordered the approximately 10,000 flight attendants to resume their duties without delay and to cease all unlawful strike activities. However, as of Monday afternoon, there was little clarity about what penalties or recourse the board or the government might pursue if the union continues its defiance. Under Canadian law, both the union and individual workers could face fines or other sanctions for refusing to comply, according to Western University law professor Michael Lynk (as reported by Reuters).
The dispute has its roots in a deadlock over pay and working conditions. Flight attendants are demanding higher salaries and, crucially, pay for the ground work they perform before takeoff and after landing—tasks that include safety checks, boarding, and assisting passengers, much of which currently goes unpaid. Air Canada’s latest proposal reportedly included a 38% increase in total compensation over four years, with an 8% hourly wage hike in the first year and additional increases based on a new ground pay formula. The airline said this would bring senior flight attendants’ average annual earnings to $87,000 by 2027. (CBC)
CUPE, however, has rejected the offer, calling it "below inflation, below market value, below minimum wage," and arguing that it would still leave flight attendants unpaid for significant periods of work, especially during boarding and waiting at airports. The union is pushing for ground work to be paid at 100% of the regular hourly rate, while Air Canada’s offer covers only 50% of that rate for ground duties. The two sides remain far apart, with little sign of compromise on the horizon.
Emotions have run high on the picket lines. Outside Toronto Pearson International Airport, flight attendants chanted slogans and held signs—one reading "serving pretzels to bring home peanuts," another asking "would you work for free?" According to BBC, CUPE national secretary-treasurer Candace Rennick apologized to travelers for the disruption, saying, "Our fight is not with you. We do not want to be here. But these workers who are mostly women have waited too long to have their issues addressed."
Passengers caught in the crossfire have reported frustration and mounting costs. Jenny Phelps, a stranded traveler, told Reuters she struggled to reach the airline to rebook her cancelled flights and was forced to pay for three extra nights in a hotel. "It's super stressful and very expensive," she said, though she expressed support for the flight crews’ cause.
The government’s intervention has not gone unchallenged. Labour leaders and unions have criticized Ottawa’s use of Section 107, arguing that it undermines workers’ leverage and the fundamental right to strike. Chris Roberts, director of social and economic policy at the Canadian Labour Congress, told CBC that the CIRB is "not simply the stenographer for the government," emphasizing the board’s responsibility to interpret the law independently. On the other side, employer associations such as the Federally Regulated Employers – Transportation and Communications (FETCO) have condemned CUPE’s defiance, warning that ignoring legal orders erodes trust in the labor relations system and threatens economic stability. "That is not labour relations, it's a reckless path that erodes trust in the labour relations system, weakens our global reputation and undermines economic stability at a moment of heightened geopolitical uncertainty," said FETCO president Daniel Safayeni in a statement.
The standoff has left the country’s labor landscape unsettled. With the CIRB’s authority being openly challenged and the government’s arbitration powers under scrutiny, the outcome of this dispute could have far-reaching implications for labor relations in Canada. For now, the picket lines remain, the planes stay grounded, and the question of when Canada’s skies will return to normal is anyone’s guess.
As the impasse drags on, travelers, workers, and policymakers alike are left waiting—hoping for a breakthrough that will get everyone moving again.
