Air Canada, CUPE drop mediation over FA wages, opt for arbitration

Air Canada says it and CUPE, the union representing its flight attendants, have decided to end mediation over wage increases and will move the dispute to arbitration.

The airline and the union had reached a tentative four-year deal for flight attendants in August. But earlier this month, attendants voted by a wide margin to reject the proposed pay hike.

All other elements of the tentative agreement remain intact, with only salaries still unresolved.

According to Air Canada, wage matters usually proceed through mediation before arbitration, but the union requested on Friday that the issue go directly to arbitration.

READ MORE: Tech firm estimates Air Canada owes passengers $66M+ for disruptions & lost time

“While remaining committed to the entirety of the process, Air Canada, in a spirit of cooperation, has agreed to CUPE’s request. This will provide cabin crew with wage increases and their retro pay, dating back to April 2025, as soon as possible,” Air Canada said in a press release Tuesday (Sept. 16).

The airline noted that the agreement ensures flights will keep operating smoothly, with no interruptions from labour action.

Air Canada has resumed operations after a high-profile flight attendants strike – which started August 16, and lasted nearly four days – grounded its aircraft, disrupting the flights of some 500,000 customers.

Financial analysts say Air Canada faced roughly $61-million a day in lost revenue during the strike, but the full financial impact is not yet known.

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