Toronto: The Canadian government has ordered Air Canada’s 10,000 striking flight attendants back to work and into binding arbitration, ending a walkout that disrupted travel for more than 100,000 passengers worldwide at the height of the summer season.
Federal Labour Minister Patty Hajdu announced the intervention less than 12 hours after the strike began on Saturday, citing the risks to the economy and the strain on Canadians amid ongoing U.S. trade tariffs.
“Canadians rely on air travel every day, and its importance cannot be understated,” Hajdu said. She added that while attendants would soon return to work, a full resumption of Air Canada’s services could take several days.
The shutdown of Canada’s largest airline affected around 130,000 passengers daily, with nearly 700 flights canceled since Friday. By Saturday afternoon, 671 flights had been grounded, and another 96 scheduled for Sunday were already suspended.
Air Canada, which runs about 700 flights a day, warned that it could take up to a week before operations return to normal. Travelers left in limbo described confusion and frustration, with many struggling to find rebooking options as rival carriers were already at capacity during the busy summer period. The Canadian Union of Public Employees (CUPE), which represents the flight attendants, accused the government of trampling on workers’ constitutional right to strike.
Please see my statement on my decision to exercise my authorities under section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board to arbitrate the dispute between CUPE Air Canada Flight Attendants and Air Canada:https://t.co/m6AOE14B0s
— Patty Hajdu (@PattyHajdu) August 16, 2025
“The Liberal government is rewarding Air Canada’s refusal to negotiate fairly by giving them exactly what they wanted,” said Wesley Lesosky, president of the Air Canada Component of CUPE. Union representatives said attendants would remain on picket lines until officially directed to return to work.
The union had rejected earlier calls for government-directed arbitration, but Ottawa stepped in after talks collapsed. Hajdu ordered the Canada Industrial Relations Board to extend the existing collective agreement until a new one is reached through arbitration.
Contract negotiations have dragged on for eight months, with the two sides far apart on wages and compensation for unpaid duties performed while planes are on the ground.
The airline’s latest proposal offered a 38 percent increase in total compensation, including benefits and pensions, over four years. But the union criticized the plan, noting that the 8 percent raise in the first year was insufficient in the face of high inflation.
Air Canada said passengers whose flights were canceled could seek full refunds or, where possible, rebook with other airlines. But with planes already full, immediate alternatives remain scarce.
