The Air Canada strike in August 2025 involves a labor dispute between Air Canada and its flight attendants represented by the Canadian Union of Public Employees (CUPE). The strike began on August 16, 2025, after negotiations stalled over pay and working conditions. The flight attendants argued that Air Canada's wage offer—an increase totaling 38% over four years, including a 25% raise in the first year—was below inflation and market levels, and did not compensate adequately for unpaid work during ground duties such as waiting at airports or boarding passengers. The union claimed wages had effectively declined due to inflation. In response, Air Canada halted most of its operations, canceling thousands of flights and affecting about 130,000 passengers daily. The Canadian government intervened with binding arbitration, declaring the strike unlawful and ordering workers back to work, but the union defied this order initially. Ultimately, after intense negotiations and government involvement, a tentative agreement was reached on August 19, 2025, bringing an end to the strike with commitments destined to transform the industry, including addressing groundwork compensation issues that could set precedents for other airlines.
Main Causes of the Strike
- Dissatisfaction with the wage offer being below inflation and market standards.
- Lack of compensation for work done during ground time (such as waiting and boarding).
- Long negotiation period (over eight months) without resolution.
- Flight attendants' overwhelming support for strike action (99.7% voted in favor).
Impact
- Suspension of flights for Air Canada and Air Canada Rouge, with regional Air Canada Express flights unaffected.
- Disruption of travel for approximately 130,000 passengers daily.
- Government intervention to prevent extended economic impacts.
Resolution
- Government-mandated arbitration and back-to-work orders.
- Union defiance leading to sustained strike action initially.
- Tentative agreement reached, addressing key union demands, including ground pay reforms expected to influence airline industry standards beyond Air Canada.
