Cabin Crew Pay Dispute Deepens as Air Canada, Union Hold First Talks

Air Canada and the union representing 10,000 striking flight attendants have resumed discussions with the help of a mediator, marking their first talks since the strike began on Saturday. The Canadian Union of Public Employees (CUPE) confirmed late Monday that the strike continues despite the Canada Industrial Relations Board (CIRB) declaring the action unlawful.

Stalemate Over Pay and Unpaid Ground Duties ✦

CUPE is demanding higher wages and compensation for ground duties — including boarding and other pre-flight tasks — which currently go unpaid. This demand mirrors recent contract gains by U.S. flight attendants at American Airlines and Alaska Airlines.

Air Canada CEO Mike Rousseau defended the airline’s 38% compensation boost offer, but said union demands exceed 40%, leaving a “big gap.” CUPE has said the carrier’s offer equates to just 17.2% over four years.

Government Steps In With Probe 🔍

Canadian Jobs Minister Patty Hajdu has ordered an investigation into allegations of unpaid work at the airline, calling the situation “unacceptable.” She has urged both parties to negotiate a fair collective agreement and signaled potential legal or legislative measures to enforce a return to work.

Prime Minister Mark Carney has also urged a resolution, warning that “hundreds of thousands of Canadians and visitors are being disrupted.”

Impact on Passengers and Airline Operations ✈

♦ Passenger disruption: Hundreds of thousands affected; some travelers are driving long distances to meet critical appointments.

♦ Financial fallout: Air Canada suspended its Q3 and full-year 2025 guidance; shares fell nearly 3% as the strike entered day three.

♦ Operational scale: Air Canada typically carries 130,000 passengers daily and is part of the global Star Alliance network.

While many passengers sympathize with crew demands, frustration is mounting over ongoing uncertainty.

Unprecedented Defiance of Federal Order ⚠

CUPE leaders say they are willing to risk jail time rather than comply with the CIRB’s order to return to work. Such defiance is rare in Canada, where previous governments have stepped in to end rail and dock strikes threatening economic stability.

With mediator William Kaplan facilitating discussions in Toronto, both sides are considering formal mediation — but Air Canada wants crews back on duty as a precondition.