Air Canada Flights Resume After Government Ends Strike

By 
 updated on August 17, 2025

In a decisive move to restore normalcy, the Canadian government has stepped in to halt a strike by Air Canada’s unionized flight attendants, ensuring the airline can resume its operations.

According to CNN, the intervention, ordered by Jobs Minister Patty Hajdu, directed the Canada Industrial Relations Board (CIRB) to end the labor dispute and enforce binding arbitration to settle a stalled contract negotiation between Air Canada and the Canadian Union of Public Employees (CUPE).

The labor dispute at Air Canada has been simmering for months, with the collective agreement for flight attendants expiring on March 31. Negotiations between the airline and CUPE, which represents the unionized flight attendants, hit a roadblock over several unresolved issues. Central to the disagreement is the union’s push for payment for time spent on the ground, including periods between flights and while assisting passengers during boarding.

Government Steps Into Airline Dispute

Currently, flight attendants are primarily compensated only for the time when the aircraft is in motion. This compensation structure has been a major point of contention, as CUPE argues it does not fairly reflect the full scope of their work. The union has consistently favored a negotiated resolution over any imposed solution to address these concerns.

Binding Arbitration Imposed on Parties

Air Canada, facing operational disruptions due to the strike, had earlier appealed to Prime Minister Mark Carney’s minority Liberal government for intervention. The airline sought a directive to end the labor action and bring stability to its services. Following this request, Jobs Minister Patty Hajdu issued an order to the CIRB to step in and resolve the impasse.

Strike Ends with CIRB Directive

The CIRB, acting on the minister’s directive, officially ordered an end to the strike, halting further disruptions to Air Canada’s flight schedules. As part of its ruling, the board extended the terms of the expired collective agreement until a new contract could be finalized. This extension aims to maintain a baseline of working conditions for flight attendants during the arbitration process.

CUPE Opposes Government’s Arbitration Move

Despite the government’s action, CUPE has expressed strong opposition to the imposition of binding arbitration. The union believes that a mutually agreed-upon solution through direct talks would better serve the interests of its members. However, with the CIRB’s order in place, the path forward will now be determined through the arbitration process.

Air Canada Announces Return to Normalcy

On Sunday, Air Canada confirmed that the CIRB had mandated the extension of the previous contract terms. This development paves the way for the airline to resume its regular operations without the threat of further strikes. The airline’s announcement signals a temporary resolution to the conflict, though the underlying issues remain unresolved.

Compensation Debate at Heart of Conflict

The core of the dispute lies in how flight attendants are paid for their time, a matter that has yet to be settled. CUPE’s demand for compensation for ground duties reflects a broader push for fair recognition of their workload. As arbitration proceeds, this issue will likely remain a focal point of discussions.

Union Silent on Recent Developments

Following the CIRB’s decision, CUPE has not yet provided a public response to the latest developments. Reuters reached out to the union for comment, but no statement was immediately available. The union’s stance in the coming days may shed light on its next steps during arbitration.

Impact on Travelers and Airline Operations

For passengers, the end of the strike brings relief after weeks of uncertainty and potential travel disruptions. Air Canada’s ability to operate without interruptions will likely restore confidence among travelers. However, the long-term outcome of the contract negotiations could still influence future service quality.

Looking Ahead to Arbitration Results

As binding arbitration begins, both Air Canada and CUPE will present their cases to reach a new agreement. The process, while ensuring an end to the strike, may not fully satisfy either party’s initial demands. Observers will be watching closely to see how the final contract addresses the contentious compensation issues.

Broader Implications for Labor Relations

The government’s intervention in this dispute raises questions about the role of federal authority in private sector labor conflicts. While the move has restored operations at Air Canada, it may set a precedent for future disputes in other industries. CUPE and other unions could view such actions as a challenge to their bargaining power.

Balancing Worker Rights and Public Interest

For now, the focus remains on finalizing a contract that balances the needs of flight attendants with the operational demands of Air Canada. The arbitration process will be crucial in determining whether a fair compromise can be achieved. Until then, both sides must adhere to the CIRB’s directives while awaiting a resolution.

About Melissa Smith

Become Wealthier... 
In Just 5 Minutes Per Day

Subscribe to Capital Digest and get fast, actionable insights on markets, money, and opportunity — straight to your inbox.