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20 August 2025

Air Canada Strike Ends With Landmark Deal For Crews

A tentative agreement promises new ground pay for flight attendants, but travelers face lingering delays and industry costs are set to rise.

After three tense days that left airports packed, schedules in chaos, and passengers stranded across North America, Air Canada flight attendants have ended their strike, ushering in a new era for airline labor relations—and not just in Canada. The strike, which began early on August 17, 2025, and concluded with a tentative agreement on August 19, was the airline’s most disruptive labor action in more than a decade, according to Reuters and Global News. The ripple effects were immediate and widespread, with over 2,500 flights cancelled worldwide and more than 500,000 travelers impacted.

Air Canada’s entire North American network ground to a halt, and even international routes felt the sting. Major airports like Toronto Pearson, Vancouver, and Montreal-Trudeau saw unprecedented delays, while the airline scrambled to maintain limited operations using management staff and third-party carriers. The Canadian Union of Public Employees (CUPE), representing over 10,000 flight attendants, led the strike after negotiations broke down over pay and working conditions—particularly the issue of unpaid labor during ground duties.

At the heart of the dispute was a longstanding complaint: flight attendants are paid only for hours spent in the air. Ground tasks—boarding, deplaning, mandatory preflight checks—have long gone uncompensated, a practice CUPE’s national president Mark Hancock called out as failing to “take seriously the reality of frontline workers’ lives.” As delays mounted and frustration grew among both staff and passengers, the strike became emblematic of a wider industry reckoning over labor standards and pay equity.

Legal and political pressure mounted quickly. On August 18, the Canada Industrial Relations Board issued an order requiring both parties to enter emergency arbitration, setting the stage for a mediated settlement. Federal Transport Minister Pablo Rodriguez urged a swift resolution, noting the strike’s potential to disrupt national mobility and commerce. While the government stopped short of direct intervention, its watchful stance underscored the strike’s significance not just for Air Canada, but for the Canadian economy as a whole.

Passengers caught in the crossfire faced long waits, limited support services, and inconsistent communication from the airline. “Passengers need to have some patience,” Frances Gertsch, a senior travel advisor in Prince Edward Island, told CBC. She explained that it would take seven to ten days for flight schedules to stabilize, as “planes and crew are out of position, and planes that have been sitting on the ground need to be checked.” Gertsch advised travelers to double-check flight status via the Air Canada app or website before heading to the airport, as some flights will remain cancelled or delayed during the recovery period.

For many, the strike meant extra nights stranded in cities far from home. While Air Canada offered full refunds or travel credits for cancelled flights, additional expenses—hotels, alternate transportation—fell to passengers. Under the Air Passenger Protection Regulations, the strike is considered outside the airline’s control, so compensation for extra costs is not guaranteed. Gertsch recommended that travelers review their insurance policies, as some may cover these unexpected expenses, but cautioned that “there are lots of questions still to come, and it’s going to take more patience to get all of that resolved.”

The breakthrough came on August 19, when Air Canada and CUPE reached a tentative deal with the help of a federal mediator. Staff were told to return to work that evening, and flights began to resume. Yet, as Air Canada cautioned, a return to full, regular service would take up to a week as aircraft and crews are repositioned and maintenance checks completed. “We have planes and crew that are out of position,” Gertsch reiterated, adding that long-haul routes could take up to three days to get back on track due to strict rest requirements for flight crews.

So, what did the flight attendants win? According to Reuters, the tentative agreement ends unpaid labor for Air Canada’s cabin crews. The deal provides pay for an hour before flights on narrowbody jets and 70 minutes on larger widebody aircraft—starting at half their normal hourly rate in the first year and rising to 70% by year four. Air Canada’s previous offer had been half pay for just 45 minutes (narrowbody) and 60 minutes (widebody). This change, union officials say, finally acknowledges the full scope of flight attendants’ work and sets a precedent that could influence upcoming contract negotiations across North America.

The financial implications are significant. Labor is the airline industry’s second-largest operating expense after fuel, and analysts estimate Air Canada’s new agreement could add up to C$140 million in incremental costs. The airline’s wage bill has already increased 26% since before the pandemic, and with weak passenger traffic to the U.S. and strained Canada-U.S. trade relations, Air Canada faces a challenging road to profitability. Still, as McGill University’s John Gradek told Reuters, “The movement is on.”

This strike is part of a broader wave of unrest across the airline industry. In the U.S., flight attendants at American, Southwest, and Alaska Airlines have rejected contract deals that failed to address unpaid work. United Airlines’ union members recently voted down a $6 billion labor agreement for similar reasons. Sara Nelson, international president of the Association of Flight Attendants-CWA, called the Air Canada strike “an inspiration to working people everywhere.” She added, “The Air Canada strike helps negotiations everywhere. It defined the problem of ridiculous expectations for flight attendants to work without pay.”

Air Canada CEO Michael Rousseau acknowledged the industry-wide implications, telling Reuters, “I do think the industry has to take a closer look at this over time. We all should be open to change.” American and Alaska have already begun compensating attendants for boarding time, and Delta Air Lines instituted boarding pay for cabin crew in 2022, a move seen as a response to unionization efforts.

For now, Air Canada’s focus is on restoring normal operations. Rousseau pledged to bring service back “as quickly and fairly as possible,” but warned that some flights will continue to be cancelled until the schedule stabilizes. The airline has set up an online portal for real-time updates, and travelers are urged to remain flexible as the recovery unfolds.

As the dust settles, the Air Canada strike stands as a turning point—not just for the airline, but for the entire industry’s approach to labor and compensation. The message from flight attendants is clear: the days of unpaid labor are, at least in Canada, coming to an end.