Air Canada operations remain suspended amid federal government intervention

Air Canada says operations will stay suspended despite the federal government ordering binding arbitration between the airline and the union representing its flight attendants.

In a statement on Saturday evening, the airline said it will wait for the decision of the Canada Industrial Relations Board (CIRB) on whether to order striking flight attendants back to work.

As a result, Air Canada said rolling cancellations will extend to Sunday afternoon.

Meanwhile, flight attendants from across Canada will continue to hold demonstrations on Sunday at major airports across the country, including Toronto, Montreal, Vancouver and Calgary airports.

Earlier on Saturday, hours into the strike, federal Jobs Minister Patty Hajdu directed the CIRB to intervene and end the labour dispute.

“As minister of labour, I have exercised my authorities under section 107 of the Canadian Labour Code to direct the Canada Industrial Relations Board to order the parties to resume and continue their operations and duties,” she said in a press conference.

Under the order, the existing collective agreement between Air Canada and flight attendants represented by the CUPE will be extended until a new agreement is instituted by the arbitrator, Hajdu said.

“In this instance, and despite resolution on a number of key items, this dispute will not be resolved quickly enough,” the minister told reporters. “The impact of the work stoppage at Air Canada that began early this morning is already being felt by travellers.”

Hajdu pointed to disruptions to critical air cargo, including pharmaceuticals, as well as cancellations that have left thousands of Canadians abroad stranded.

“Canadians have already sacrificed a lot in this uncertain economy, and this labour disruption is adding to their worries and financial burdens,” she said.

The strike officially began at 12:58 a.m. ET., after Air Canada flight attendants failed to reach a deal with the airline. The Air Canada component of CUPE announced they would hold picket lines in Montreal, Toronto, Calgary, Richmond, B.C., Halifax, Winnipeg and Ottawa.

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In a statement Saturday afternoon, CUPE wrote that the arbitration order sets “a terrible precedent.”

“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 CUPE Air Canada Component president Wesley Lesosky in the release.

Lesosky underscored the union’s position in a press conference earlier Saturday morning.

“We would rather be flying, and welcoming you on your journey or bringing you back home,” he said. “We would rather be earning a paycheque than walking a picket line.”

Lesosky acknowledged the stress on passengers grounded by the disruptions, saying the striking flight attendants share their pain.

Among the challenges facing his union’s members, he said, were hours of unpaid work, crowded housing conditions in major cities and food insecurity, giving rise to a food bank program that he says has operated out of union offices.

“No one should accept being forced to work for free, for hours and hours, every day. No one should accept being forced to work for poverty wages for years in a profession, just to earn a dignifying living. That’s what this is about,” he said, “In Canada, in 2025, no one should be treated this way, and Canadians agree.”

CUPE pointed out that the chair of the CIRB is Maryse Tremblay, a former Air Canada counsel.

The union had asked Tremblay, who was appointed as the CIRB chair by the Liberal government, to recuse herself from the proceedings on account of her previous relationship with the airline.

“It is increasingly difficult to escape the appearance of collusion between Air Canada and the Liberal government throughout this process,” CUPE said.

In a statement posted on X on Saturday, Conservative MP Kyle Seeback said Prime Minister Mark Carney is “proving once again that he is no friend to workers or labour” and would rather “reward his corporate buddies” instead of helping the flight attendants secure fair pay.

“No worker -- federally-regulated or otherwise -- should be forced, especially by the government, to work without being paid,” Seeback said. “Yet, that is exactly what flight attendants are being ordered to do.”

NDP Leader Don Davies called it a “blatant misuse” of the section of the Labour Code.

“They should recall Parliament and democratically debate back to work legislation if they feel it’s justified,” Davies said in a post on X.

Shortly after strike action began, Air Canada initiated a lockout that took effect at 1:30 a.m. ET, describing it in a press release Saturday morning as a “necessary” step in response to the stoppage.

The airline says all operations by Air Canada and Air Canada Rouge are suspended, and that the shutdown of the country’s largest airline impacts approximately 130,000 people each day.

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The airline said it cancelled around 500 flights leading up to the strike deadline in anticipation of the work stoppage.

Regional Air Canada Express flights operated by Jazz Aviation and PAL airlines are not impacted.

“If your flight is cancelled, don’t go to the airport without a confirmed new booking,” Air Canada told customers on Friday.

The airline said it will get in touch with the customers by email or text if their flights are cancelled.

Passengers whose flights are impacted will be able to request a full refund on Air Canada’s website or the mobile app, the airline said.

On Aug. 11, the Air Canada Component of CUPE submitted a revised wage proposal to the airline, following around eight months of negotiations with the airline.

According to the union, entry-level Air Canada flight attendants’ wages have only increased by 10 per cent ($3 per hour) in the past 25 years.

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Additionally, the union says workers “are not paid for a significant portion of their time on the job, including while they perform critical safety checks, attend to onboard medical and safety emergencies, and assist passengers with boarding and deplaning,” according to a press release on Aug. 5.

Polling data published by the union Friday shows that 88 per cent of surveyed Canadians “believe flight attendants should be paid for all work-related duties,” and 80 per cent supported “raising flight attendant pay to meet the rising cost-of-living.”

On Wednesday, the union gave the airline a 72-hour strike notice, in which Air Canada responded with a lockout notice that said it would prevent the flight attendants from being able to work Saturday.

Meanwhile, the union said the proposal from Air Canada was rejected because they preferred to negotiate and arrive at a deal the members could vote on.

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According to Air Canada, the latest offer contained a 38 per cent increase in total compensation, including benefits and pensions over four years. But the union said that the proposal did not consider inflation in the proposed 8 per cent increase in the first year.

Earlier, in July the union put it to a vote and 99.7 per cent of the members had backed the motion to strike.

With files from Lynn Chaya, Aarjavee Raaj, Hunter Crowther, Charlie Buckley and The Canadian Press