Flight attendants at Air Canada have issued a 72-hour strike notice, potentially leading to a work stoppage beginning on August 16, 2025. In response, the airline has prepared for a complete shutdown by issuing its own 72-hour lockout notice. This situation threatens to disrupt Air Canada’s operations significantly, marking the first total shutdown due to labor disputes since an 11-day strike by pilots in 1998.
The timing of this potential strike is particularly critical, as it coincides with the peak summer travel season. Air Canada and its regional partner, Air Canada Rouge, transport approximately 130,000 passengers daily, including around 25,000 returning travelers from international destinations. Under Canada’s Air Passenger Protection Rights, the airline is obligated to provide assistance to passengers affected by cancellations, which could lead to challenges in securing alternative travel arrangements during this busy period.
Negotiations Stalled Over Key Issues
Negotiations between Air Canada and the Canadian Union of Public Employees (CUPE) have reached an impasse after several months of discussions. The primary sticking points include wages and working conditions. CUPE has raised concerns about the low salaries of junior flight attendants, which are reportedly below the Canadian minimum wage. Analysis suggests that current wages would need to increase by approximately 32 to 34 percent to maintain the purchasing power of 2014 salaries adjusted for inflation.
CUPE has also pointed out that Air Canada only compensates flight attendants from the moment the aircraft departs until it arrives at its destination. Consequently, attendants perform about 35 hours of unpaid work monthly, including pre-flight and post-flight duties. This issue of unpaid labor has been a long-standing concern, prompting various efforts by labor groups to amend the Canada Labour Code through legislation.
In October 2024, NDP MP Bonita Zarrillo introduced Bill C-415, which aimed to require employers to compensate flight attendants for all time spent on required duties outside of flight hours. The bill, however, did not progress past its first reading in Parliament before expiring in January 2025.
High Stakes and Financial Implications
The stakes are high for both Air Canada and CUPE as negotiations continue. CUPE has made its objectives clear, advocating for wage increases that align with the living wage and compensation for unpaid work. This stance is supported by a near unanimous vote of 99.7 percent in favor of a strike if negotiations do not yield results.
Air Canada’s negotiation strategy appears to echo its tactics from 2024, when it relied on government intervention to reach an agreement with pilots. Previous negotiations with flight attendants have been fraught with political intrigue, suggesting that the current negotiations may also attract significant attention.
If a strike occurs, Air Canada could face financial losses estimated between $50 million and $60 million per day. Such substantial losses would likely push the airline back to the negotiating table very quickly, as it seeks to mitigate the impact of a work stoppage.
As the situation unfolds, the implications for passengers and the airline industry as a whole remain to be seen. Air Canada’s ability to manage its operations during this critical period will depend heavily on the outcomes of these negotiations and the willingness of both sides to reach a compromise.
John Gradek, an expert in aviation management, has stated that he does not hold any affiliations or financial interests related to this matter, ensuring an impartial perspective on the unfolding events.
