Air Canada union rejects arbitration, demands pay for ground duties

21 Aug 2025

MONTREAL, Canada: Air Canada’s operations were paralyzed on the morning of August 18 after striking flight attendants refused to comply with a government-backed order to return to work, escalating one of the most dramatic labor confrontations in recent Canadian history.

The airline, which normally transports 130,000 passengers daily as part of the Star Alliance network, had expected to resume flights on the evening of August 17.

The Canada Industrial Relations Board (CIRB) had ordered the Canadian Union of Public Employees (CUPE), representing 10,000 flight attendants, to return to work and submit to binding arbitration. Instead, the union rejected the directive, calling it unconstitutional and urging Air Canada to return to the bargaining table.

CUPE insists that binding arbitration would relieve pressure on the airline and deny workers the leverage they need to secure better pay. The strike centers on wages and a demand that attendants be compensated for ground duties—such as boarding passengers—that airlines traditionally exclude from paid hours. Air Canada flight attendants, like most in North America, are only paid once the aircraft is moving.

“We are ready to negotiate a fair deal,” CUPE declared, urging Air Canada to abandon arbitration and sit down to bargain. On social media, many Canadians voiced support for the strikers, arguing that attendants deserve pay for all work performed. Air Canada, meanwhile, accused the union of defying the law and postponed its restart plans until the evening of August 18.

Prime Minister Mark Carney’s Liberal government, which triggered the back-to-work order through the CIRB, now faces an unusual challenge: a union openly rejecting a ruling issued under Section 107 of Canadian labor law. Such defiance is virtually unprecedented.

The government could ask the courts to enforce the order, push for emergency legislation when Parliament reconvenes in September, or continue to encourage fresh negotiations. Experts warn, however, that the Supreme Court of Canada has placed limits on government intervention in strikes, even in essential sectors.

The dispute reflects a broader labor trend across North America. American Airlines and Alaska Airlines have recently agreed to compensate attendants during boarding, and crews at United Airlines are also pushing for similar terms. For many Air Canada workers, this strike is about aligning with those new standards.

At Toronto Pearson Airport, stranded passengers expressed both frustration and sympathy. “They are right,” said Italian traveler Francesca Tondini, who supported the attendants even as she remained unsure when she could fly home.

With thousands stranded and the country’s largest airline grounded, the standoff underscores the stakes of how airlines compensate the people responsible for passenger safety and service.

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