**Government Intervenes in Air Canada Flight Attendants Strike, Orders Binding Arbitration**

Sat Aug 23 2025 04:47:22 GMT+0300 (Eastern European Summer Time)
**Government Intervenes in Air Canada Flight Attendants Strike, Orders Binding Arbitration**

The Canadian government has mandated negotiations between Air Canada and its flight attendants amid a major strike affecting hundreds of flights.


The intervention aims to restore operations and resolve ongoing salary disputes after the airline suspended services for over 130,000 passengers.

The Canadian government stepped in decisively as the Air Canada flight attendants' strike grounded operations across the country, prompting widespread travel disruption. Jobs Minister Patty Hajdu announced binding arbitration between Air Canada and the Canadian Union of Public Employees (Cupe), which represents over 10,000 flight attendants. This intervention, ordered just hours into the strike on Saturday morning, arises from persistent grievances over salary and working conditions that have yet to be addressed despite ongoing negotiations.

Hajdu emphasized the urgency of stabilizing "supply chains" and restoring flight schedules. Air Canada, the nation's largest airline, announced significant cancellations, whereby approximately 500 flights per day were suspended, impacting travel plans for around 130,000 passengers. Passengers were advised not to head to the airport unless they were flying with other airlines.

Section 107 of the Canada Labour Code was invoked to facilitate a mediated discussion aimed at resolving differences between the airline and the union. Cupe reacted strongly, arguing that the government’s intervention infringed upon their charter rights, and termed the move as a potentially damaging precedent for labor relations.

As the strike commenced at 00:58 EDT on Saturday, Air Canada had already begun to curtail operations, which saw cancellations of 623 flights by Friday night. The airline's flight attendants are advocating for wage increases to reflect their performance, particularly emphasizing the need for compensation during layover periods when planes are on ground.

Negotiations have been fraught with contention; Air Canada offered a 38% compensation increase over four years, including a 25% wage hike in the first year. However, Cupe described the proposal as insufficient, falling well short of inflation and minimum wage benchmarks, leaving workers unpaid for certain hours. Despite union leadership’s claims of good faith bargaining for over eight months, disagreements continued to escalate, leading to the strike vote where 99.7% of members supported action against the airline.

Air Canada’s actions leading up to the strike included its budget subsidiary, Air Canada Rouge, halting operations, and ongoing statements expressing regret for the impact on customers. With the flight attendants set to picket at major airports, the timeline for resolution remains uncertain, hinging on quick negotiations spurred by government intervention.

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