“The strike has ended”: Air Canada & union reach tentative agreement; airline to begin resuming flights

This story was updated on Tuesday, August 19 at 7:01 a.m. EST

Air Canada and the union that represents its 10,400 flight attendants have reached tentative agreement, ending a strike that began early Saturday morning.

The update was first shared by the Air Canada Component of CUPE on its Facebook page at roughly 5:20 a.m. EST. Tuesday (Aug. 19).

“The Strike has ended. We have a tentative agreement we will bring forward to you,” the union wrote in a post to its members.

The mediation was completed with a mediator, William Kaplan, one of Canada's preeminent arbitrators and mediators who has helped resolve some of the country's most challenging disputes. Kaplan, notably, helped with the Canada Post labour negotiations.

READ MORE: “I feel like I’m not getting anywhere”: The overlooked toll of the Air Canada strike on travel advisors

CUPE noted that it must now “fully cooperate” with resumption of Air Canada and Air Canada Rouge’s flights, which have come to a standstill for nearly four days now, disrupting the flights of around 500,000 customers.

The two groups negotiated through the night, from 7 p.m. EST Monday (Aug. 18) to 4:23 a.m. EST this morning, to reach a tentative deal, the union wrote.

Terms of the agreement are not yet known. It will now undergo a ratification vote by the membership.

“Your right to vote on your wages was preserved and we will go over this on the zoom presentation,” CUPE wrote, advising members that it would review the terms of the deal.

Air Canada and CUPE have been in talks over a new contract for flight attendants since the expiration of their previous 10-year agreement in March.

Key issues in the negotiations include wages and compensation for "ground time" — the work flight attendants perform before departure and after passengers leave the plane.

The airline had previously proposed a 38 per cent increase in overall compensation for flight attendants spread over four years, including a 25 per cent raise in the first year. However, the union considered the offer inadequate.

Air Canada to restart operations

Air Canada confirmed the gradual restart of its operations in a press release issued shortly before 6 a.m. EST. 

Mediation discussions were begun on the basis that the union commit to have the airline’s flight attendants immediately return to work, allowing the airline to resume its operations, which have been grounded since August 16.

“The suspension of our service is extremely difficult for our customers. We deeply regret and apologize for the impact on them of this labour disruption. Our priority now is to get them moving as quickly as possible," said Michael Rousseau, president and CEO of Air Canada, in a statement. "Restarting a major carrier like Air Canada is a complex undertaking. Full restoration may require a week or more, so we ask for our customers’ patience and understanding over the coming days. I assure them that everyone at Air Canada is doing everything possible to enable them to travel soon." 

The first flights are scheduled for the evening of August 19, but customers are advised that the airline’s return to full, regular service may require seven-to-ten days as aircraft and crew are out of position, said Air Canada. 

"During this process, some flights will be cancelled over the next seven to ten days until the schedule is stabilized," the airline wrote. 

Only customers with confirmed bookings whose flights are shown as operating should go to the airport (check your flight’s status on aircanada.com or on the Air Canada mobile app before going to the airport). 

Air Canada says it will offer options to those with cancelled flights, including obtaining a full refund or receiving a credit for future travel. 

The carrier will also offer to rebook customers on other airlines, although capacity is currently limited due to the peak summer travel season.

In customary form, Air Canada is not commenting on the agreement until the ratification process is complete. 

During any ratification or under the binding arbitration process, a strike or lockout is not possible, which means customers "can plan, book and travel with Air Canada with certainty," the airline said. 

Tension in the air

The strike kicked in early Saturday, but within hours, the federal government invoked a provision of the Canadian Labour Code to mandate binding arbitration via the Canada Industrial Relations Board (CIRB).

CUPE rejected the move initiated by Jobs Minister Patty Hajdu, accusing Air Canada of anticipating government intervention and failing to negotiate in good faith.

After a tense weekend, as flights remained grounded, and as picketing lines unfolded at Canadian airports, the CIRB deemed the union’s refusal to comply with the back-to-work directive “unlawful.”

Air Canada said the labour disruption would impact approximately 130,000 passengers per day, on average.

Prime Minister Mark Carney, speaking to media Monday, expressed his disappointment over the stalemate, but emphasized that it remained essential for flight attendants to be “compensated equitably at all times.”

The union issued a mandatory 72-hour strike notice last Wednesday (Aug. 13), following unsuccessful negotiations to renew the collective agreement that expired on March 31.

The strike marked the first job action by Air Canada flight attendants since the 1980s.

"Unpaid work is over"

In a statement early Tuesday, the Air Canada Component of CUPE said the flight attendants at Air Canada and Air Canada Rouge have reached a tentative deal that will achieve "transformational change for our industry after a historic fight to affirm our Charter rights." 

"Unpaid work is over. We have reclaimed our voice and our power," the union wrote. "When our rights were taken away, we stood strong, we fought back — and we secured a tentative agreement that our members can vote on." 

This is a developing story.

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