Air Canada to ‘wind down’ flights after talks with flight attendant union fail

Air Canada has issued a 72-hour lockout notice to the Canadian Union of Public Employees (CUPE), which represents 10,000 of its flight attendants, after the union provided notice of its intention to strike. 

In a statement released on August 13, 2025, Air Canada said it will start a gradual “wind down” of the majority of its operations, which is expected to be finished within the next three days. The airline has also requested government-led arbitration to address the issue. 

Strike could impact 130,000 daily passengers 

“We regret the impact a disruption will have on our customers, our stakeholders and the communities we serve. As we have seen elsewhere in our industry with other labor disruptions, unplanned or uncontrolled shutdowns, such as we are now at risk of through a strike, can create chaos for travelers that is far, far worse,” said Michael Rousseau, President and Chief Executive of Air Canada. 

The airline said that Air Canada and Air Canada Rouge carry approximately 130,000 customers a day who could be affected by a disruption. This includes 25,000 Canadians that the airline flies home from abroad each day.  

However, the carrier added that Air Canada Express flights operated by Jazz and PAL Airlines will continue to operate as normal. 

Negotiations hit a wall 

Air Canada said contract negotiations with CUPE have “reached an impasse” after tabling an improved job offer. 

In a previous statement, the carrier said it believes no further progress is possible in negotiations after the union presented a counteroffer featuring what it described as “exorbitant increases” and rejected the company’s offer to enter binding third-party arbitration. 

The revised contract, which the airline offered to the union on August 11, 2025, included a total compensation increase of 38% over four years, with 25% in the first year. The proposal also tackled ground pay, enhanced pensions and benefits, increased crew rest, and included other improvements aimed at bettering work-life balance, according to the carrier. 

Improved contract did not meet expectations 

Air Canada claimed that the new contract offer would make its flight attendants “the best compensated in Canada,” but the union disagreed. CUPE rejected the proposal, stating that Air Canada’s latest offer was “below inflation, below market value, below minimum wage”. 

“Even with the “best offer” that Air Canada can make, an entry-level Air Canada flight attendant working full-time will still earn less than federal minimum wage,” the union said in a statement on August 12, 2025. 

Following the legal 72-hour lockout notice, the airline’s operations could be grounded as soon as August 16, 2025. The post Air Canada to ‘wind down’ flights after talks with flight attendant union fail appeared first on AeroTime.

Go to Source