By Global Transport Desk | sbkinews.in
Date: August 18, 2025
Air Canada, Canada’s largest airline, has suspended plans to resume flights—effectively halting operations—as its flight attendants continue their strike in defiance of a government-backed return-to-work order. The strike, led by the Canadian Union of Public Employees (CUPE), has grounded hundreds of flights and disrupted travel for over 130,000 passengers daily.
Strike Continues Despite Legal Orders
The Canada Industrial Relations Board (CIRB) on Monday declared the strike illegal, issuing a directive for all 10,000 flight attendants to immediately resume work and enter binding arbitration. CUPE has defiantly refused, calling the order unconstitutional and demanding a negotiated agreement instead.
Air Canada had initially planned a phased resumption of flights on Sunday evening, but the union’s refusal forced the airline to suspend those plans. With the strike ongoing, the carrier now projects that flights could remain grounded into Monday evening—or longer.
Key Demands and Negotiation Breakdown
The strike stems from long-standing disputes over compensation, particularly for ground duties like boarding, which flight attendants say remain unpaid under current practices. Air Canada’s latest offer—an overall 38% increase in total compensation over four years—was rejected as insufficient given rising inflation and workload.
CUPE argues that paying for only time in motion undervalues essential on-ground work and fails to reflect industry shifts where U.S. carriers have started compensating for boarding and other duties.
Passengers Left in Limbo
With Air Canada’s operations at a standstill, travelers are facing cancellations, rebookings, and widespread confusion. Canadian traveler Francesca Tondini, waiting at Toronto Pearson, voiced frustration but expressed support for union demands, especially amid tough inflation.Reuters
While granting refunds or future credits, Air Canada has advised travelers to avoid going to airports unless they have a new reservation..People.com
Economic and Political Fallout
Air Canada has already had to halt its Q3 and yearly profit projections due to the protracted strike, which reflects growing financial losses.
Prime Minister Mark Carney has condemned the “immeasurable disruption” to Canadians and visitors alike, calling for a swift resolution. Legal avenues being considered include court enforcement of CIRB order or new legislation, though past Supreme Court rulings caution against curtailing employee’s right to strike too aggressively.
Broader Impacts: Cargo, Global Routes, Star Alliance
The strike’s ripple effects extend beyond passengers. Cargo logistics—including medical shipments—face delays, while other Star Alliance member airlines must scramble to fill the void in cross-border connectivity.
Several local labor unions have joined picket lines in solidarity, adding pressure on the federal government.Reuters
What’s at Stake
| Stakeholder | Key Concerns |
|---|---|
| Flight Attendants | Unpaid ground duties, fair wages amid inflation |
| Air Canada | Massive flight disruptions, financial losses, reputational damage |
| Passengers | Travel uncertainty and frustration, long refund/wait times |
| Government | Balancing labor rights vs. economic fallout; limited parliamentary options |
| Industry | Impact on cargo, alliance routes, and travel ecosystem reliability |
The Road Ahead
With no end in sight, Air Canada operations remain suspended. CUPE faces legal pressure as a result of the CIRB’s illegal-employment decision, but Carney’s administration exercises prudence before taking further action. Both sides face a critical turning point: unless talks resume meaningfully, travel disruptions may stretch into September.
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