Air Canada, Union at Impasse as Strike Grounds Flights and Disrupts 130,000 Daily Passengers

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Air Canada, Union at Impasse as Strike Grounds Flights and
Flight attendants protest in front of the Air Canada headquarters near Pierre-Elliott Trudeau Airport in Montreal, Quebec, Canada, on August 17, 2025. ANDREJ IVANOV/AFP via Getty Images)/Getty Images

Over 130,000 travelers are facing daily disruptions after Air Canada's 10,000 flight attendants went on strike this past weekend, grounding hundreds of flights during one of the busiest travel periods of the year.

The Canadian government had ordered workers back on the job by Sunday afternoon, but the Canadian Union of Public Employees (CUPE), which represents the flight attendants, refused to comply. The union says it will continue picketing until a fair contract is reached.

"We remain on strike," CUPE stated Sunday. "We demand a fair, negotiated contract and to be compensated for all hours worked."

Air Canada had initially planned to resume some operations Sunday evening. However, by late Sunday, the airline confirmed flights would not restart until at least Monday night.

The strike began early Saturday morning after contract talks stalled following eight months of negotiations.

According to CBS News, the airline offered a 38% compensation increase over four years, including a 25% raise in the first year.

CUPE rejected the deal, saying it doesn't match rising living costs and fails to pay flight attendants fairly for time spent working while the plane isn't in the air.

"This offer is below inflation, below market value, and even below minimum wage," the union said in a separate statement.

Air Canada Rouge Halts Operations as Flight Attendants Stay on Picket Lines

By Sunday, Air Canada had canceled more than 670 flights, with more suspensions expected. The company typically operates about 700 flights daily, People said.

Air Canada Rouge, its vacation-focused airline, has also halted operations. However, Air Canada Express flights remain active, as they are operated by separate partners.

Passengers with affected flights are eligible for refunds or can rebook using Air Canada's app or website. But rebooking may be difficult, the airline warned, as other carriers are already full due to the summer rush.

The Canadian government, facing pressure from business groups and travel organizations, referred the dispute to the Canada Industrial Relations Board.

Jobs Minister Patty Hajdu said the decision to order a return to work was made to protect the economy during a time of increased trade pressure from the U.S.

While some support government intervention, others argue it weakens workers' rights. "We invite Air Canada back to the table," CUPE said. "Stop hiding behind the government when bargaining gets tough."

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