Ottawa invokes Section 107 of Labour Code to end AC strike; "Strike still on," says union

EDITOR'S NOTE: As of Saturday, August 16 at 8:22 p.m. EST, all flights at Air Canada and Air Canada Rouge remain suspended pending the outcome of the Canada Industrial Relations Board (CIRB) process. See the latest here.

The Liberal government has invoked Section 107 of the Canada Labour Code to end a strike by Air Canada’s flight attendants.

The action was announced by Patty Hajdu, Minister of Jobs and Families, in a statement Saturday morning (Aug. 16).

“I am exercising this authority because it is critical to maintaining and securing industrial peace, protecting Canadians and promoting conditions to resolve the dispute,” Minister Hajdu wrote. “Despite the parties’ resolution of several key differences, the CIRB is best positioned to help them find a solution on the outstanding items.”

Minister Hajdu met with officials from Air Canada and Canadian Union of Public Employees (CUPE), which represents roughly 10,000 Air Canada flight attendants, last night (Aug. 15), urging them to reach a deal.

READ MORE: Air Canada’s flight attendants officially on strike

A deal was not reached, however, and all operations at Air Canada and Air Canada Rouge were suspended as a strike took effect at 12:58 am ET.

“It is disappointing to have to conclude today that Air Canada and CUPE flight attendants are at an impasse and remain unable to resolve their dispute,” wrote Minister Hajdu.

Under section 107 of the Canada Labour Code, the Canadian Minister of Labour can direct the Canada Industrial Relations Board (CIRB) to arbitrate a labour dispute when it's deemed necessary to maintain or secure industrial peace.

READ MORE: Air Canada flights remain suspended pending outcome of CIRB process

This section grants the Minister broad discretionary power to take actions that promote the settlement of industrial disputes.

The CIRB, in turn, is obligated to implement the Minister's direction, including ordering binding arbitration – even if it restricts the right to strike.

“The government firmly believes that the best deals are reached by the parties at the bargaining table. It has now become clear that this dispute won’t be resolved at the table. Canadians are increasingly finding themselves in very difficult situations and the strike is rapidly impacting the Canadian economy,” wrote Minister Hajdu.

The Minister added that “flight attendants play a critical role in keeping Canadian families and workers safe as they travel.”

“It is important that they be compensated fairly at all times,” she said.

In response to a CTV News inquiry about the order for binding arbitration, Air Canada said it was “premature to comment as the CIRB process is underway.”

“It is also premature to comment about restarting the airline and so we still ask customers not to go to the airport unless they have a confirmed booking and their flight is shown as operating," the airline said. 

"A terrible precedent"

Air Canada’s flight attendants are seeking improved wages and compensation for work they do before flights take off and after they land.

In a statement Saturday, Wesley Lesosky, president of the Air Canada Component of CUPE, said the government’s latest action sets a “terrible precedent.”

"Now, when we're at the bargaining table with an obstinate employer, the Liberals are violating our Charter rights to take job action and give Air Canada exactly what they want - hours and hours of unpaid labour from underpaid flight attendants, while the company pulls in sky-high profits and extraordinary executive compensation,” said Lesosky.

Lesosky noted that the Minister’s remarks will “not ensure labour peace at Air Canada.”

“This will only ensure that the unresolved issues will continue to worsen by pushing them down the road,” Lesosky said. "Nor will it ensure labour peace in this industry — because unpaid work is an unfair practice that pervades nearly the entire airline sector, and will continue to arise in negotiations between flight attendants and other carriers."

Shortly after Ottawa's announcement, the Air Canada Component of CUPE took to its Facebook page to say that the strike was still on. 

Air Canada grounds airplanes

CUPE served Air Canada the statutory 72-hour strike notice on August 13, 2025.

Air Canada has since been gradually reducing its schedule of approximately 700 daily flights to manage the labour disruption created by CUPE's strike notice, while working to reach a new, negotiated collective agreement and avoid further labour disruption.

Approximately 130,000 customers will be impacted each day that the strike continues, the airline says.

Air Canada is advising affected customers not to go to the airport unless they have a confirmed ticket on an airline other than Air Canada or Air Canada Rouge.

The airline is notifying customers with imminent travel of additional cancelled flights and their options.

For those customers due to travel soon whose flights are not yet cancelled, Air Canada has put in place a goodwill policy to allow them to rebook their travel or obtain a credit for future travel.

For more information, customers should visit here.

This is a developing story. 

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