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Air Canada flight attendants remained on strike Sunday, defying a government labor board’s order to return to work and forcing Canada’s largest airline to delay its restart plans.
The walkout, which began shortly after 1 a.m. Saturday, grounded most of the carrier’s 700 daily flights and stranded more than 100,000 passengers.
The airline had hoped to restart service Sunday evening, but scrapped those plans after the Canadian Union of Public Employees (CUPE) urged its members to defy a Canadian Industrial Relations Board (CIRB) order to return to work.
“Approximately 240 flights scheduled to operate beginning this afternoon have now been canceled,” the airline said in a press release on Sunday.
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Air Canada flight attendants and supporters during a strike at Toronto Pearson International Airport in Mississauga, Ontario, Canada, on Saturday, Aug. 16, 2025. (Arlyn McAdorey/Bloomberg via Getty Images / Getty Images)
Unionized Air Canada flight attendants formed picket lines outside major airports, demanding better pay and working conditions.
CUPE, which represents more than 10,000 flight attendants, said on Saturday its members are paid only when an aircraft is moving — from pushback to arrival — and receive no pay for boarding, deplaning or ground delays.
Reuters reported that Prime Minister Mark Carney’s government intervened Saturday, asking the CIRB to impose binding arbitration. The board issued the order, which the union opposed.
Canadian labor law allows the government to ask the CIRB to impose binding arbitration to protect the economy.
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Pilots show their support for Air Canada flight attendants participating in a general strike at Montréal-Pierre Elliott Trudeau International Airport on August 16, 2025, in Montreal, Canada. (Andrej Ivanov/Getty Images / Getty Images)
The government can now seek a court order to enforce compliance or request an expedited hearing.
The labor union is demanding full compensation for this unpaid ground time.
CUPE provided a statement to FOX Business on Sunday regarding its decision to remain on strike.
“We will be challenging this blatantly unconstitutional order that violates the Charter rights of 10,517 flight attendants, 70% of whom are women, and 100% of whom are forced to do hours of unpaid work by their employer every time they come to work,” the union said. “We invite Air Canada back to the table to negotiate a fair deal, rather than relying on the federal government to do their dirty work for them when bargaining gets a little bit tough.”
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Air Canada planes at Toronto Pearson International Airport in Mississauga, Ontario, Canada, on Saturday, Aug. 16, 2025. (Arlyn McAdorey/Bloomberg via Getty Images / Getty Images)
Wesley Lesosky, president of the Air Canada component of CUPE, said in a press conference in Toronto that, as of Saturday morning, there were no bargaining sessions scheduled between the two sides, which have held on-and-off negotiations for months.
“We are here because Air Canada forces us to work for free for hours and hours every day, and we are here because we are not going to accept it anymore,” he said.
Air Canada said its package raises overall compensation by 38% over four years, while the union stresses that the company is only offering 50% pay for ground duties like boarding and deplaning, not full hourly wages.
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People hold placards as a strike begins after the union representing Air Canada’s 10,000 flight attendants failed to reach an agreement with the airline, at Montreal-Pierre Elliott Trudeau International Airport in Dorval, Quebec, Canada on August 16, (REUTERS/Peter McCabe / Reuters Photos)
The company said its offer would make Air Canada flight attendants the best compensated in Canada. Already, cabin crew earn up to $17 more per hour than their counterparts at the company’s largest domestic competitor, it said.
Air Canada said hourly rates would rise as high as 94 Canadian dollars ($69 U.S.) in the first year, reflecting a 12% to 16% increase that includes an 8% boost to base wages and another 4% to 8% through a new ground pay formula. By 2027, it said, senior flight attendants would earn an average of 87,000 Canadian dollars ($63,000 U.S.) a year, with about 20% making 90,000 Canadian dollars ($65,700 U.S.) or more. Air Canada said on Saturday that it “remains engaged and committed to negotiate a renewal to its collective agreement with CUPE.”
The airline is strongly advising affected customers not to go to the airport unless they have a confirmed ticket on an airline other than Air Canada or Air Canada Rouge.
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“Air Canada will offer those with canceled flights options, including obtaining a full refund or receiving a credit for future travel,” Air Canada said. “The carrier will also offer to rebook customers on other carriers, although capacity is currently limited due to the peak summer travel season.”
FOX Business’ Michael Dorgan and Reuters contributed to this report.
