Government Steps In to End Air Canada Strike with Binding Arbitration Order

Tue Oct 14 2025 09:00:08 GMT+0300 (Eastern European Summer Time)

In a decisive move, the Canadian government has mandated arbitration to resolve the Air Canada labor dispute, affecting thousands of passengers.

On Saturday morning, Air Canada flight attendants initiated a strike, leading to the suspension of hundreds of flights nationwide. In response, Jobs Minister Patty Hajdu invoked Section 107 of the Canada Labour Code to compel both Air Canada and the Canadian Union of Public Employees (Cupe) to resume negotiations. Cupe represents over 10,000 flight attendants who are advocating for wage increases and compensation for work done while not in the air. The strike's impact is significant, with Air Canada reporting disruptions affecting around 500 flights each day, and approximately 130,000 passengers could be affected daily.

While the airline proposes a 38% total wages increase over four years, Cupe argues the offer falls short of market rates and fails to meet inflation, leaving flight attendants unpaid during certain hours. Cupe has expressed concern over the government's intervention, claiming it infringes on their rights. The airline has advised travelers to avoid airports unless flying with different carriers.

As negotiations are set to resume, the focus remains on reaching a mutually acceptable resolution to prevent further disruptions in air travel across Canada.