Air Canada faces its fourth day of cancellations as the ongoing labour dispute between Air Canada and its 10,000 flight attendants, represented by the Canadian Union of Public Employees (CUPE), has taken an unexpected turn, plunging the airline into chaos and stranding hundreds of thousands of passengers worldwide.
Dublin flights have been cancelled for the fourth successive day:
- Montreal AC917@09.20 & inbound AC916
- Toronto AC801@09.50 & inbound AC8900
The airline posted a CAD418m Canadian dollar (USD302.7m) operating profit for the first half of 2025 and had a 7.4pc operating margin. It has cancelled its guidance for full year as a result of the dispute.
The strike, which began on 16 August 2025, has seen tensions rise sharply, with the situation turning increasingly contentious as the union defies federal orders to return to work, prompting accusations of illegality and threats of severe penalties.
The conflict, rooted in demands for better wages and compensation for unpaid ground work, erupted after months of stalled negotiations. CUPE, representing the predominantly female workforce, argues that Air Canada’s flight attendants are paid “poverty wages,” with entry-level salaries as low as €19,500 annually before taxes, significantly below Canada’s federal minimum wage. The union also highlights the lack of pay for critical tasks such as safety checks and passenger boarding, which they perform before and after flights. Air Canada countered with an offer of a 38pc compensation increase over four years and 50pc pay for ground work, but CUPE rejected this, claiming it fails to address inflation or match industry standards, such as those at Air Transat, where flight attendants will earn €29.80 per hour by November 2025.
The situation escalated when, just 12 hours after the strike began, Canada’s Jobs Minister Patty Hajdu invoked Section 107 of the Canada Labour Code, ordering binding arbitration and directing the Canada Industrial Relations Board (CIRB) to mandate a return to work. The CIRB declared the strike unlawful on 18 August, setting a noon deadline for flight attendants to resume duties. However, CUPE’s national president, Mark Hancock, defiantly announced that the union would continue the strike, risking fines and even jail time. “If it means folks like me going to jail, then so be it,” Hancock stated at a press conference, accusing the government of violating workers’ constitutional rights and rewarding Air Canada’s refusal to negotiate fairly.
The defiance has grounded Air Canada and Air Canada Rouge flights, with approximately 500,000 cancellations reported by 18 August, affecting 130,000 passengers daily during the peak summer travel season. The airline, which operates 700 daily flights to 180 cities globally, has warned that restoring normal operations could take up to 10 days once the strike ends. Passengers, including a Canadian robotics team stranded in Seoul and a bride-to-be unable to reach her wedding in Australia, have expressed frustration, with many left in limbo at airports like Toronto’s Pearson and Montreal’s Trudeau. Air Canada has offered refunds and rebooking options, but under Canada’s Air Passenger Protection Regulations, it is not obliged to cover incidental expenses like hotels or meals, as labour disputes are deemed outside its control.
The union’s defiance has sparked broader controversy, with CUPE alleging a conflict of interest involving CIRB chair Maryse Tremblay, who served as Air Canada’s legal counsel from 1998 to 2004. The union has launched a legal challenge, arguing that Section 107 violates the Canadian Charter of Rights and Freedoms by curtailing the right to strike. Labour experts warn that the dispute could set a precedent for government intervention in labour conflicts, with some drawing parallels to past cases where union leaders faced imprisonment for defying back-to-work orders. In 1980, a postal union leader was jailed for three months, and in 1981, a CUPE president served 45 days for similar defiance.
Air Canada’s CEO, Michael Rousseau, expressed disappointment, urging a resolution to minimise passenger disruption. Meanwhile, Prime Minister Mark Carney called for equitable compensation for flight attendants but stopped short of condemning the government’s intervention. The union’s stance has garnered support from some labour groups, with threats of a general strike looming if penalties are enforced. However, business groups, citing economic damage amid U.S. tariff pressures, have backed the government’s move to prioritise stability.
As picket lines persist outside major Canadian airports, the dispute shows no immediate signs of resolution. Air Canada has delayed plans to resume flights, with its booking site indicating cancellations until further notice. For travellers, the uncertainty continues, with the airline advising against airport visits unless alternative bookings are confirmed. The standoff between CUPE, Air Canada, and the federal government has turned a routine labour dispute into a high-stakes battle, with far-reaching implications for Canada’s aviation industry and labour relations.
