Categories: AirlinesCanada News

Air Canada Flight Attendants, Airline Forge Tentative Deal, Ending Strike Threat

Passengers wait in line to speak with Air Canada representatives at the Pierre-Elliott Trudeau Airport in Montreal on August 15. © ANDREJ IVANOV/AFP via Getty Images

MONTREAL/TORONTO — Air Canada and its 10,000 flight attendants, represented by the Canadian Union of Public Employees (CUPE), reached a tentative agreement early Tuesday, August 19, 2025, ending a disruptive four-day strike that canceled approximately 500,000 passengers’ flights during the peak summer travel season. The breakthrough, announced after intense overnight negotiations, allows Canada’s largest carrier to begin resuming operations, though the airline warns that a full return to normal service could take seven to ten days.

“The strike has ended. We have a tentative agreement we will bring forward to you,” CUPE’s Air Canada Component stated, confirming that members will comply with the resumption of operations. Air Canada echoed the announcement, noting that mediation began Monday at 7 p.m. ET and concluded just after 4 a.m. ET on Tuesday, with the condition that flight attendants return to work immediately. “This allows the airline to resume the operations of Air Canada and Air Canada Rouge, which have been grounded since Aug. 16,” the airline said in a statement.

The strike, which began on Saturday, August 16, followed months of stalled talks over wages and unpaid ground work, such as boarding and safety checks. CUPE rejected Air Canada’s initial offer of a 38% compensation increase, arguing it amounted to only a 17.2% wage hike over four years, insufficient given inflation and industry standards. The union also defied a Canada Industrial Relations Board (CIRB) order to return to work on Sunday, prompting the board to declare the strike unlawful. CUPE challenged the order in Federal Court, with national president Mark Hancock stating on Monday, “If it means folks like me going to jail, then so be it. We’re looking for a solution here.”

The tentative agreement’s details remain undisclosed pending ratification by union members, but it follows significant pressure from federal Jobs Minister Patty Hajdu, who urged both sides to negotiate and announced a probe into allegations of unpaid work in the airline sector. “The claims are deeply disturbing,” Hajdu said, referencing flight attendants’ demands for compensation for ground duties.

Passenger Disruptions and Recovery Challenges

The strike left passengers stranded across Canada and beyond, with Air Canada operating around 700 flights daily. Travelers faced canceled flights, limited rebooking options, and significant out-of-pocket expenses. The airline advised that only passengers with confirmed bookings on operating flights should head to airports, as aircraft and crew remain out of position. “Some flights will be cancelled over the next seven to ten days until the schedule is stabilized,” Air Canada warned, offering refunds, travel credits, or rebooking on other airlines, though capacity is constrained due to the busy summer season.

The agreement comes as a relief to passengers like John and Lois Alderman, who faced a potential week-long delay in Toronto with dwindling insulin supplies for John, a diabetic. Others, like Beverley and Martin Newstead, also U.K.-bound, expressed frustration over extended stays and mounting costs. In Montreal, Luca Pozzoli considered driving to Boston to catch a flight to Italy, while Sandra Major, a Bahamian grandmother, received no immediate rebooking options after her flight was canceled.

Broader Implications for Labor

The strike’s defiance of the CIRB order drew support from other labor groups, with the Canadian Labour Congress and Air Canada’s pilot union rallying behind CUPE. The resolution marks a significant moment for Canada’s labor movement, as CUPE’s push for fair compensation and paid ground work could influence future negotiations in the aviation sector. The federal probe into unpaid work, prompted by the strike, may further reshape industry practices.

Prime Minister Mark Carney, speaking on Monday, expressed disappointment over the prolonged dispute but emphasized the importance of fair compensation for flight attendants. “Ottawa recognizes the critical role that flight attendants play in keeping Canadians and their families safe as they travel,” he said, urging a swift resolution.

As Air Canada ramps up operations, with the first flights scheduled for Tuesday evening, passengers and the airline face a challenging recovery period. The tentative deal signals a step toward normalcy, but the union’s fight for better working conditions and the government’s scrutiny of airline labor practices suggest lasting impacts from this high-profile standoff.

Sam Watt

Sam Watt is a veteran companies market cap and value news writer, author, and columnist who began his career in 1980. With over four decades of experience, Sam specializes in analyzing company market valuations, corporate histories, and sector-specific developments across the auto, food, and broader consumer industries. His work offers readers deep insights into the forces shaping business growth, historical market shifts, and the evolving dynamics of corporate value. Known for his sharp analysis and factual storytelling, Sam continues to be a trusted voice in financial journalism.

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