- Air Canada has issued a 72-hour lockout notice to CUPE, representing 10,000 flight attendants, after the union announced plans to strike starting August 16, citing low wages and unpaid labour.
- The airline will begin cancelling flights on August 14, with a full suspension of Air Canada and Air Canada Rouge operations by August 16, affecting up to 130,000 daily passengers.
- Air Canada has requested government-imposed arbitration, claiming negotiations have reached an impasse, but CUPE rejected the offer, demanding more substantial improvements to working conditions
- Air Canada stock (TSX:AC) last traded at C$19.54
Air Canada (TSX:AC) has issued a 72-hour lockout notice to the Canadian Union of Public Employees (CUPE), representing 10,000 flight attendants at Air Canada and Air Canada Rouge, following the union’s announcement of its intent to strike beginning August 16. The airline has begun a phased wind down of most operations, with full suspension of flights expected by Saturday.
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The move comes after eight months of negotiations failed to produce a tentative agreement. Despite federal conciliators’ involvement and Air Canada’s offer to enter binding arbitration, CUPE rejected the proposal, citing unresolved issues including low wages and unpaid labour during ground time.
Air Canada claims its latest offer, tabled August 11, included a 38 per cent increase in total compensation over four years, improved pensions and benefits, and enhanced crew rest provisions—without demanding concessions. CUPE, however, maintains that the offer does not adequately address what it calls “poverty wages” and systemic unpaid work.
In response to the union’s strike notice, Air Canada has requested government intervention under Section 107 of the Canada Labour Code to impose binding interest arbitration, citing recent precedents in rail, port, and airline labour disputes. The airline argues that a work stoppage would severely impact the Canadian economy and leave tens of thousands of travelers stranded, including 25,000 Canadians flown home daily from abroad.
The airline’s decision to lock out flight attendants and suspend operations during peak travel season has drawn criticism from labour advocates and passengers alike. While Air Canada Express flights operated by Jazz and PAL Airlines will continue, they account for only 20 per cent of the airline’s daily traffic. The remaining 130,000 daily passengers face cancellations and uncertainty.
“However, the disappointing conduct of CUPE’s negotiators and the union’s stated intention to launch a strike puts us in a position where our only responsible course of action is to provide certainty by implementing an orderly suspension of Air Canada’s and Air Canada Rouge’s operations through a lockout,” Air Canada’s president and chief executive, Michael Rousseau claimed in a news statement.
Air Canada says the first round of flight cancellations will begin August 14, with more on August 15, and a full halt of Air Canada and Air Canada Rouge flights by August 16. Customers affected by cancellations will be eligible for full refunds and may be rebooked on other carriers, though availability is limited due to summer travel demand.
The airline has urged passengers not to go to airports unless their flights are confirmed and operating, and to use online tools for updates and rebooking. Contact center wait times are expected to be significantly elevated.
CUPE’s strike mandate, approved by 99.7 per cent of members, remains effective for 60 days. The union has emphasized that its members are seeking fair compensation and recognition for the full scope of their labour, not just time spent in the air.
Air Canada is Canada’s largest airline with a presence in more than 180 airports in Canada, the United States and internationally across six continents.
Air Canada stock (TSX:AC) last traded at C$19.54. Though it has descended 12.22 per cent since the year began, it has flown 27.30 per cent higher since this time last year.
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