Air Canada Receives 72-Hour Strike Notice from CUPE and Issues Lockout Notice in Response
Air Canada Receives 72-Hour Strike Notice from CUPE and Issues Lockout Notice in Response |
| [13-August-2025] |
MONTRÉAL, Aug. 13, 2025 /CNW/ - Air Canada today said that it has issued the statutory 72-hour lockout notice to the Canadian Union of Public Employees (CUPE) representing 10,000 flight attendants at Air Canada and Air Canada Rouge after the union provided notice it intends to begin a strike. To provide customers certainty, Air Canada will begin a phased wind down of most of its operations to be completed over the next three days. The airline has also sought government-directed arbitration to resolve the situation.
Despite eight months of good faith negotiations that included the assistance of federal conciliators, and an offer to enter binding arbitration, Air Canada has been unable to reach a tentative agreement with the union. Air Canada tabled a revised comprehensive proposal to the union on August 11, which sought no concessions in return from its Flight Attendants and provided for a 38 per cent total compensation increase over four years. The offer also addressed the issue of ground pay, improved pensions and benefits, increased crew rest and contained other improvements. In an additional attempt to prevent travel disruption, Air Canada had also offered to CUPE to enter third-party, binding arbitration to settle the outstanding points of discussion. CUPE has responded by issuing a notice to begin a strike as early as August 16. "We regret the impact a disruption will have on our customers, our stakeholders and the communities we serve. 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. As we have seen elsewhere in our industry with other labour disruptions, unplanned or uncontrolled shutdowns, such as we are now at risk of through a strike, can create chaos for travellers that is far, far worse," said Michael Rousseau, President and Chief Executive of Air Canada. "Our latest offer included a 38 per cent increase in total compensation over four years that would have made our flight attendants the best compensated in Canada, along with provisions for ground pay and other work-life balance, career and pension improvements. At the same time, we asked for no concessions from the union. Given this, while we remain available for discussions with CUPE, we have requested government-directed arbitration as we now view it as the only certain avenue to bring closure to bargaining and mitigate the impact on travellers, business and the Canadian economy." Air Canada Express flights operated by Jazz and PAL Airlines will continue to operate as normal. However, these regional partners only carry about 20 per cent of Air Canada's daily customers. Air Canada and Air Canada Rouge carry approximately 130,000 customers a day who could be affected by a disruption, this includes the 25,000 Canadians that the airline flies home from abroad each day, who could be stranded. Arbitration Air Canada proposed to the union on August 11 that the parties retain a third-party, independent arbitrator to assist in addressing outstanding issues to develop a new tentative agreement through binding arbitration, but CUPE rejected this offer. The company has now requested immediate intervention by the Canadian government to use its powers to direct binding interest arbitration under section 107 of the Canada Labour Code before a work stoppage becomes effective. The airline believes recent government interventions in rail, port and airline labour disruptions in Canada provide a proven precedent. The Code is designed to encourage industrial peace in cases where parties reach an impasse after meaningful collective bargaining has occurred. In this case, despite the fact that there has been prolonged bargaining with an offer of unprecedented increases to total compensation, there is no prospect for a resolution in the foreseeable future. Moreover, hardships and other repercussions will progressively be felt by Canadians and other stakeholders, as well as by the Canadian economy. Air Canada has worked hard and in good faith to reach a new collective agreement with CUPE over the last eight months and remains available for further negotiations or to explore options to finalize a new collective agreement. This includes Air Canada's earlier offer to enter third-party, binding arbitration with the union. Impact to Operations Air Canada has been forced into this decision to lock out its Flight Attendants and regrets the impact the suspension of operations will have on customers as a result of the union's issuance of a strike notice during such a heavy travel period. However, as events at other airlines in recent years have shown, sudden or unmanaged work stoppages produce a significantly worse disruption to travel than a planned suspension of flying. A controlled wind down allows Air Canada to advise customers in advance, reduces the chance of customers being stranded, provides the airline and customers the time and opportunity to make alternative travel arrangements, and gives customers more certainty. An unplanned shutdown is also a major risk for the company and its other employees. Air Canada operates globally to approximately 65 countries on six continents with a fleet of 259 aircraft. By optimally positioning aircraft and crews ahead of a possible stoppage, Air Canada will be able to provide required routine maintenance and more quickly restore regular service. The first flights will be cancelled August 14, with more on August 15, with a complete cessation of flying by Air Canada and Air Canada Rouge on August 16. Information for customers Customers whose flights are cancelled will be notified and they will be eligible for a full refund, which can be obtained online at www.aircanada.com or through the Air Canada mobile app. The company has made arrangements with other Canadian and foreign carriers to provide customers alternative travel options to the extent possible. Customers will be notified of alternative travel options that are identified for them. However, given other carriers are already very full due to the summer travel peak, securing such capacity will take time and, in many cases, will not be immediately possible. Air Canada has undertaken other measures to mitigate the impact on customers. This includes implementing a flexible rebooking policy for all customers, so they can change or defer travel at no additional cost. Air Canada will in all cases inform passengers of their rights under applicable rules if their flight is cancelled or delayed and meet its regulatory obligations. Air Canada strongly recommends against customers going to the airport unless they have a confirmed booking and their flights are showing as operating (check your flight's status on www.aircanada.com or on our mobile app before going to the airport). Customers are also advised to use self-service tools as contact centre wait times are expected to be highly elevated. Additional customer information, including an FAQ, is available www.aircanada.com/action. About Air Canada Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations worldwide, with a wide selection of hotels, flights, cruises, day tours, and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger and freighter aircraft. Air Canada's climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. For additional information, please see Air Canada's TCFD disclosure. Air Canada shares are publicly traded on the TSX in Canada and the OTCQX in the US. 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