Standoff at 30,000 Feet: Air Canada Strike Enters Critical Phase

The Air Canada strike by approximately 10,000 flight attendants shows no signs of abating. The union, represented by CUPE, continues to defy a binding arbitration order issued by the government—escalating the standoff across the airline industry.

On August 16, Federal Jobs Minister Patty Hajdu invoked Section 107 of the Canada Labour Code to compel binding arbitration, aiming to end the work stoppage. The Canada Industrial Relations Board (CIRB) followed suit with a back-to-work mandate. 

Despite this, CUPE declared the order unconstitutional, accusing the government of siding with Air Canada and undermining the right to strike. The union insists on a negotiated settlement rather than legal compulsion. 

Air Canada has suspended all operations for its mainline and Rouge subsidiaries, while Air Canada Express flights—operated by Jazz and PAL—continue. The strike has stranded around 130,000 passengers daily during one of the busiest travel periods of the year.

In response to growing uncertainty, Air Canada has pulled its profit forecasts for both the third quarter and full year, citing the prolonged operational disruption.

Across major hubs—from Toronto Pearson to Fort Lauderdale—passengers remain stranded. In Fort Lauderdale, some travelers reported ongoing cancellations and extended waits for alternative arrangements. 

The airline has offered flexible rebooking and future credits to affected customers, urging passengers not to visit airports without confirmed travel plans. 

CUPE’s core demands include higher wages and compensation for groundwork—time spent boarding or preparing flights not currently paid. In contrast, Air Canada’s latest proposal offered a 38% total compensation increase over four years, which the union deems insufficient amid rising inflation and systemic wage disparities. 

Political analysts warn the government must tread carefully; heavy-handed enforcement could erode worker rights, even as institutional pressure mounts from economic fallout.