The Canadian government has intervened in the ongoing labor dispute between Air Canada and its striking flight attendants, forcing the airline and its 10,000 unionized employees back to work and into binding arbitration.
Federal Jobs Minister Patty Hajdu announced on Saturday that she had asked the Canada Industrial Relations Board to impose binding arbitration on both sides and order an immediate end to the strike, which has left over 100,000 travelers stranded.
Hajdu explained that the decision was made after the talks broke down, and it became clear that the parties were not any closer to resolving the key issues.
“The talks broke down. It is clear that the parties are not any closer to resolving some of the key issues that remain, and they will need help with the arbitrator,” she said, adding that the full resumption of services could take days.
The strike, which is the first since 1985, began after Air Canada’s unionized flight attendants, represented by the Canadian Union of Public Employees (CUPE), went on strike following stalled talks over wage increases.
CUPE described the airline’s offers as “below inflation (and) below market value”. The union has also rejected requests from the federal government and Air Canada to resolve outstanding issues through independent arbitration.
In addition to wage increases, the union wants to address uncompensated ground work, including during the boarding process.
Rafael Gomez, head of the University of Toronto’s Centre for Industrial Relations, noted that it’s common practice globally to compensate flight attendants based on time spent in the air.
However, he added that the union had built an effective communication campaign around the issue, creating a public perception of unfairness.
Air Canada has suspended all flights for Air Canada and its budget arm Air Canada Rouge due to the strike, impacting approximately 130,000 customers daily. The airline has advised affected customers not to go to the airport unless they have a confirmed ticket on another airline.
Passenger Freddy Ramos shared his experience of having his flight cancelled and being rebooked to a different destination, saying, “probably 10 minutes prior to boarding, our gate got changed, and then it was cancelled and then it was delayed and then it was cancelled again.”
The strike has also raised concerns about the potential economic impact. The Business Council of Canada warned that an Air Canada work stoppage could add further pain to the country’s economy, already dealing with unprecedented pressures on critical supply chains.
While passengers have generally voiced support for the flight attendants on social media, Canadian businesses have urged the federal government to impose binding arbitration and cut short the strike.
CUPE, however, has expressed opposition to the government’s move, with spokesperson Hugh Pouliot stating that the strike will end only when the Canada Industrial Relations Board issues a binding arbitration notice to the parties.
Air Canada had also requested government-directed arbitration to resolve the situation.