Canadian Government Steps in to Resolve Air Canada Strike

Sun Oct 19 2025 23:58:56 GMT+0300 (Eastern European Summer Time)

Binding arbitration mandated as hundreds of flights remain grounded amidst ongoing labor dispute.

In response to a strike initiated by Air Canada flight attendants, the Canadian government has mandated both parties to engage in binding arbitration, impacting around 500 flights daily as the airline grapples with employee demands for higher wages and better working conditions.

The Canadian federal government has taken decisive action in response to the strike involving Air Canada's flight attendants, compelling both the airline and the Canadian Union of Public Employees (CUPE) to the negotiation table. This intervention was prompted by the suspension of hundreds of flights over the weekend, significantly disrupting travel plans for roughly 130,000 passengers.

Jobs Minister Patty Hajdu announced the decision for binding arbitration mere hours after the strike commenced on Saturday morning, emphasizing the need to maintain "stability and supply chains." This intervention, carried out under Section 107 of the Canada Labour Code, comes as Air Canada, Canada's largest airline, faced significantly scaled-back operations.

Initially beginning at 00:58 EDT (04:58 GMT) Saturday, the strike resulted in Air Canada suspending all flights, including those from its budget subsidiary, Air Canada Rouge. Passengers were advised to avoid the airport unless they were flying with another carrier. The disruption affected approximately 500 flights daily, prompting the airline to cancel over 600 flights by Friday night, impacting more than 100,000 passengers.

The flight attendants are advocating for higher salaries and compensation for work hours while waiting for flights, but the airline's proposal includes a 38% total pay increase over four years and a 25% raise in the initial year. Union representatives have branded the offer as inadequate—“below inflation, below market value, and below minimum wage”—and have accused Air Canada of failing to negotiate in good faith.

As the strike raises tensions, CUPE has expressed dissatisfaction with the government's involvement, arguing that it infringes on their charter rights and sets a concerning precedent for labor relations in the country. Despite the government’s efforts to resolve the situation, the standoff continues as both sides prepare for arbitration in hopes of reaching a resolution.