Canada is in the midst of a remarkable surge of labor unrest, with strikes, tense negotiations, and contract disputes rippling across the country in the summer of 2025. From the tarmacs of Air Canada to the bus depots of Ottawa, workers in vital sectors are locking horns with employers over pay, working conditions, and the broader direction of labor relations. The result: a wave of collective action that has left travelers stranded, city officials scrambling, and labor experts asking what’s fueling this newfound assertiveness among Canadian unions.
The most high-profile flashpoint erupted on August 16, 2025, when more than 10,000 Air Canada flight attendants walked off the job after contract talks with the airline broke down. The sudden strike forced Air Canada to ground hundreds of planes, stranding thousands of travelers across the country and abroad, according to National Post. For three days, the country’s largest airline was brought to a near standstill, with ripple effects felt in airports and communities nationwide.
The strike’s immediate cause was a breakdown in negotiations between Air Canada and the Canadian Union of Public Employees (CUPE), the union representing the flight attendants. At the heart of the dispute was not just pay, but also a long-standing industry practice: flight attendants were only paid for the time the plane was airborne, despite performing critical safety checks and assisting passengers before takeoff and after landing. This unpaid ground time had become a flashpoint for worker frustration.
After several tense days, Air Canada resumed operations on August 19, following the announcement of a tentative deal between the company and the union. However, as CP24 and Reuters reported, the return to normalcy was slow, with full service expected to take a week to ten days. The new agreement, now up for a crucial vote by union members from August 27 to September 6, offers substantial pay increases: a 12% raise this year for most junior flight attendants and an 8% bump for senior staff. All members are slated for further increases—3% in April 2026, 2.5% in 2027, and 2.75% in 2028.
Perhaps even more significant is the deal’s approach to the issue of ground time. The tentative contract stipulates that flight attendants will receive 50% of their hourly wage for 60 minutes of ground time on narrow-body aircraft and for 70 minutes on wide-body planes. These rates are set to rise to 60% in April 2026, 65% in 2027, and 70% in 2028. This move marks a notable shift away from industry norms—according to NPR, only recently have U.S. airlines like Delta and American begun to pay flight attendants for boarding and ground duties, a change widely seen as a response to union pressure and organizing efforts.
Yet, even as the tentative deal heads to a vote, not all Air Canada flight attendants are satisfied. Several news outlets, including CP24 and Reuters, have spoken to workers who say the offer doesn’t go far enough. While the pay portion is up for ratification, other aspects of the agreement—such as changes to health and pension benefits and vacation time—are considered final. If members reject the pay increases, those terms will still take effect, and the wage issue will proceed to third-party arbitration. And, as the National Post notes, the government has already ruled the August strike illegal after attendants ignored a back-to-work order, meaning any further strike action would also be deemed illegal—though, as the recent walkout showed, that’s not always a deterrent.
The Air Canada dispute is far from an isolated case. Just days later, in Ottawa, another major labor negotiation reached a critical juncture. At approximately 2:30 a.m. on August 30, the City of Ottawa and the Amalgamated Transit Union, Local 279 (ATU 279), which represents about 2,300 bus operators, rail operators, mechanics, dispatchers, fare inspectors, and maintenance staff, announced a tentative agreement for a new contract. The previous agreement had expired at the end of March, leaving workers in limbo for months.
According to city solicitor Stuart Huxley, the two sides managed to strike a deal as the conciliation period expired—without the assistance of a federally appointed conciliator, a sign of both the urgency and complexity of the talks. The details of the agreement remain confidential for now, pending a vote by union members in the coming weeks. Once ratified, the deal will go before Ottawa’s City Council, with an in-camera briefing expected in September. For the city’s transit riders, there’s relief that a disruptive strike was avoided—at least for the moment.
These high-profile disputes are part of a broader pattern of labor unrest sweeping the country. On August 30, Global News aired a special report and video segment titled “Strike wave in Canadian labour: What’s fueling unrest?” featuring University of Manitoba labour expert Adam King. King pointed to a confluence of factors: inflation eroding real wages, pandemic-era sacrifices by essential workers, and a growing sense among unions that now is the time to push for long-overdue improvements. The unrest, King noted, is not limited to transportation; it spans sectors from postal services (Canada Post) to education, with teachers and public sector workers also pressing their demands.
“From Canada Post to Air Canada,” King explained, “we’re seeing workers across the country demanding a fairer deal. It’s about wages, yes, but also about respect, working conditions, and a voice at the table.” The timing is no accident. With labor markets tight and public sympathy high for front-line workers, unions sense leverage they haven’t felt in years. The result: a willingness to strike, or at least threaten to, in pursuit of better contracts.
The stakes are high on all sides. For employers like Air Canada and the City of Ottawa, labor disruptions come at a steep cost—lost revenue, damaged reputations, and logistical headaches. For workers, strikes are risky, with lost pay and the threat of legal repercussions, especially when governments intervene, as in the case of Air Canada. For the public, the ripple effects are immediate and tangible: canceled flights, disrupted commutes, and uncertainty about essential services.
There’s also a growing sense that Canada’s industrial relations landscape is shifting. The willingness of flight attendants to defy back-to-work orders, the persistence of Ottawa’s transit workers, and the wave of strike votes among other unions all point to a new era of labor assertiveness. As contracts expire and inflation continues to bite, more sectors may see similar showdowns in the months ahead.
For now, all eyes are on the union votes. Air Canada’s flight attendants will decide by September 6 whether to accept the new pay deal, while Ottawa’s transit workers will soon cast their ballots on their own tentative agreement. The outcomes will reverberate far beyond airports and bus stops, shaping the future of labor relations in Canada at a pivotal moment.
One thing is clear: the summer of 2025 has shown that Canadian workers are no longer content to sit quietly on the sidelines. Whether at 30,000 feet or on city streets, they’re making their voices heard—and forcing the country to listen.