Air Canada will begin gradually suspending flights over the next 72 hours after issuing a lockout notice to 10,000 flight attendants represented by the Canadian Union of Public Employees (CUPE), as the union prepares for a potential strike starting August 16.
The airline’s decision affects Air Canada and Air Canada Rouge flights, while regional services operated by Air Canada Express partners Jazz and PAL Airlines will continue as normal.
Air Canada has also requested government-directed binding arbitration after CUPE rejected its latest offer and a proposal to resolve remaining issues through third-party arbitration. The rejected offer included a 38% increase in total compensation over four years and improvements to ground pay, pensions, and crew rest provisions.
“We regret the impact on customers, but CUPE’s strike notice leaves us no choice,” said CEO Michael Rousseau. “A controlled wind-down is necessary to avoid the chaos of an unplanned shutdown.”
Customers with cancelled flights will be notified and are eligible for full refunds. The airline urged travellers without confirmed bookings to avoid going to the airport.
The company is now seeking government intervention under Section 107 of the Canada Labour Code, citing similar past action in rail and port labour disputes.
CUPE, which received a 99.7% strike mandate from its members earlier this month, said Air Canada’s offer fails to address fundamental issues including unpaid work and wages that fall below federal minimum wage.
The union also accused the airline of abandoning negotiations in favour of arbitration, which CUPE claims would eliminate members' democratic right to vote on the outcome.
“Everyone knows the best deals are negotiated at the bargaining table, not handed down by an outside third party,” said Wesley Lesosky, president of the Air Canada Component of CUPE. “Air Canada wants an arbitrator to do their dirty work for them to keep the status quo intact.”
Lesosky said the airline’s offer would still leave new flight attendants earning less than the federal minimum wage, citing examples of junior staff earning $2,108.16 per month, compared to $2,840 for workers earning $17.75 per hour. The union said Air Canada’s proposal offers a 17.2% wage increase over four years, not 38% as the airline claims.
Air Canada defended its proposal, saying it would make its flight attendants the highest-compensated in Canada, and includes improved pensions, benefits, crew rest, and work-life balance, while seeking no concessions from the union.
The airline said the union’s counteroffer demands were “exorbitant” and warned that without a resolution, the labour dispute could have a widespread impact on travellers and cargo shipments.
Air Canada said it is reviewing all options to avoid a shutdown, including formal government intervention. “We are now at an impasse in talks, with the union in a position to issue a strike notice at midnight tonight,” Meloul-Wechsler added.
The union argues that despite Air Canada’s strong financial performance in recent years, the airline has not offered fair compensation to its frontline crew.