Air Canada, CUPE issue strike and lockout notices

Contract negotiations between Air Canada and the Canadian Union of Public Employees (CUPE), representing 10,000 flight attendants at Air Canada and Air Canada Rouge, have reached a critical point, with both sides issuing formal job action notices.

At 12:58 a.m. EST on Aug. 13, CUPE served the airline with 72-hour strike notice. 

Air Canada responded with its own 72-hour lockout notice and announced plans to begin winding down most operations over the next three days, culminating in a full suspension of Air Canada and Air Canada Rouge flights on Aug. 16.

Air Canada: Citing passenger certainty, seeking arbitration

Air Canada says it has negotiated in good faith for eight months, including with the help of federal conciliators, and tabled a revised offer on Aug. 11. 

The airline says the proposal included a 38 per cent total compensation increase over four years, provisions for ground pay, and improvements to pensions, benefits and crew rest—without seeking concessions from the union.

The carrier says it also offered to enter third-party binding arbitration to resolve outstanding issues and avoid disruption, but CUPE rejected that proposal. 

Air Canada has since asked the federal government to direct binding arbitration under section 107 of the Canada Labour Code, citing recent government interventions in other transportation disputes.

“We regret the impact a disruption will have on our customers, our stakeholders and the communities we serve,” said Michael Rousseau, president and chief executive of Air Canada. 

“However, the disappointing conduct of CUPE’s negotiators and the union’s stated intention to launch a strike puts us in a position where our only responsible course of action is to provide certainty by implementing an orderly suspension of Air Canada's and Air Canada Rouge's operations through a lockout.”

He added, “Our latest offer included a 38 per cent increase in total compensation over four years that would have made our flight attendants the best compensated in Canada… we have requested government-directed arbitration as we now view it as the only certain avenue to bring closure to bargaining and mitigate the impact on travellers, business and the Canadian economy.”

CUPE: Core issues remain unresolved

CUPE says it has been at the bargaining table since December 2024, making proposals on wages, expenses, and unpaid work based on industry standards. 

The union says Air Canada has refused to address these “core issues.”

“When we asked you for a strike mandate, your answer was deafening: 99.7% in favour,” CUPE’s bargaining committee said in a statement to its members. 

“That vote sent a crystal clear message flight attendants are united, determined and ready to stand up for what we deserve.”

The union accuses Air Canada of bypassing good-faith bargaining by asking the government to impose arbitration. 

“When we stood strong together, Air Canada didn’t come to the table in good faith. Instead, they called on the federal government to step in and take those rights away,” CUPE stated.

CUPE is calling on the federal government to “respect our right to take job action in pursuit of a fair contract” and says the decision to issue strike notice “was not made lightly, but it is necessary... We are ready, we are strong and we will not back down.”

What should travel advisors know now? 

Air Canada says the phased wind down will start Aug. 14, with additional cancellations Aug. 15, and a complete halt to mainline and Rouge operations Aug. 16. 

The airline says a planned suspension will help prevent passengers from being stranded and allow for aircraft and crew positioning to resume service more quickly if a resolution is reached.

Customers with cancelled flights will be notified and can request full refunds online or through the Air Canada mobile app. 

The airline says it has arranged some alternative travel options with other carriers, but capacity is limited due to the summer peak. 

A flexible rebooking policy is also in place.

Air Canada advises passengers not to go to the airport unless they have a confirmed booking and their flight is shown as operating and to use self-service tools as call wait times may be high.

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