Photo: Shutterstock Air Canada has announced that negotiations with the flight attendants' union (CUPE), representing about 10,000 employees at the company and Air Canada Rouge, have reached an impasse.
Starting tonight (August 13, 2025) at 00:01, the parties can issue a notice for a strike or lockout set to begin on August 16, potentially grounding the company's operations and leaving tens of thousands of international travelers without service.
According to the company, its latest offer includes a total wage increase of 38% over four years - with 25% in the first year alone - alongside improved conditions such as pay for ground work, pension, welfare benefits, extended rest periods, and enhanced work-life balance. Air Canada claims the offer required no concessions from the union.
The company proposed binding arbitration to the union by an independent third party, but the union rejected the offer. Air Canada is now considering a formal request for the Canadian government to mandate arbitration to prevent impacts on passengers and shipments.
In the event of a strike, regional flights operated by Jazz or PAL Airlines will continue as usual, but these constitute only about 20% of Air Canada's daily passenger operations. The company transports approximately 130,000 travelers daily, including around 25,000 Canadians returning from abroad.
The company advises customers to check their flight status online or via the app before heading to the airport and to avoid arriving without a confirmed ticket for an active flight. Passengers whose flights are canceled will receive a full refund, but the ability to provide alternatives is limited due to peak summer season demand.
Ariel Lalou-Wexler, Vice President of Human Resources and Public Relations at Air Canada, stated: "Air Canada has been negotiating with the CUPE union for eight months, and although we have resolved many issues that required no concessions, we are still very far apart on key matters. We are disappointed that our offer to fairly resolve the remaining issues through arbitration was rejected by the union, which instead insists on unsustainable wage increases.
We are currently at a deadlock in talks, with the union in a position to issue a strike notice at midnight, creating enormous uncertainty for hundreds of thousands of travelers and companies transporting essential and sensitive goods. Air Canada is now exploring all remaining options, including a request for government-directed arbitration, to prevent disruption or at least eliminate this intolerable uncertainty for our customers."