Air Canada attendant strike grounds thousands across Canada; PM Mark Carney calls union defiance “disappointing”

A strike by more than 10,000 Air Canada flight attendants has intensified after union leaders defied a federal order to return to work, grounding flights and disrupting travel plans for tens of thousands of passengers across Canada and abroad.

The Canada Industrial Relations Board (CIRB) ruled the strike illegal, directing the union to halt all job action and order its members back to duty. Despite this, the Canadian Union of Public Employees (CUPE) pressed ahead with picket lines at major airports, while simultaneously filing a Federal Court challenge against the government’s order.

Air Canada said it had been preparing to resume flights Sunday evening (August 17) in line with the CIRB directive, but suspended its restart plans after CUPE refused to comply. The airline has warned travellers not to go to the airport unless they have confirmed bookings with other carriers and urged passengers to monitor flight status updates closely.

Prime Minister Mark Carney called the situation “disappointing” and urged a quick resolution. “Hundreds of thousands of travellers, both Canadians and international visitors, are being disrupted,” Carney told reporters Monday.

Section 107 invoked

The federal government has already imposed binding arbitration, with Jobs and Families Minister Patty Hajdu invoking Section 107 of the Canada Labour Code to justify intervention on the grounds of protecting the economy and the public. The move has further inflamed tensions, with CUPE leaders accusing Ottawa of siding with Air Canada.

Section 107 grants the federal Minister of Labour the authority to refer a labour dispute to the Canada Industrial Relations Board (CIRB), or direct the CIRB to take necessary action, when doing so is deemed expedient to "maintain or secure industrial peace" and to foster conditions favourable to resolving the dispute.

Financial consequences

Financial fallout is mounting as Air Canada suspended its third-quarter and full-year 2025 financial guidance, shelving earlier projections of $3.2-3.6 billion in adjusted EBITDA and a 3.25-3.75 percent increase in capacity. Analysts warn that the longer the disruption drags on, the greater the risk of long-term damage to the airline’s finances and reputation.

CUPE’s national president Mark Hancock vowed the union would not back down, even if legal consequences follow.

How the dispute began

The strike began after contract negotiations collapsed over pay and working conditions. Flight attendants argue they are not properly compensated for unpaid “groundwork” such as boarding and safety checks, while Air Canada says its offer of a 38 per cent compensation increase over four years, including an 8 per cent raise in the first year, is fair and competitive.

CUPE rejected the deal, saying it lags behind inflation and pay at rivals such as Air Transat. Ottawa’s intervention and the CIRB’s ruling that the strike is illegal have escalated the standoff, with CUPE insisting the fight is as much about protecting the right to strike as it is about wages.