August 19, 2025
In the latest development, it was reported overnight that the Canadian Union of Public Employees (“CUPE”) representing Air Canada flight attendants reached a tentative agreement with Air Canada that would put an end to the ongoing strike. Details of the agreement have not been disclosed, but it was announced that Air Canada operations would gradually resume starting later today, August 19.
The story of the dispute between Air Canada and its flight attendants is the latest chapter in an ongoing saga of labour unrest and the government’s role in labour relations in Canada. While the strike may be over, the debate over government intervention remains up in the air.
Negotiations Fail
Air Canada flight attendants had been without a contract since March 31, 2025, when the last collective agreement expired. Issues in dispute included adjustments to base wage rates, compensation for presently unpaid work periods such as boarding and ground delays, and modifications to scheduling frameworks intended to enhance predictability and support work-life balance. When efforts to negotiate a new deal failed, the employer called for binding arbitration.
CUPE provided a 72-hour strike notice on August 13, which was followed in kind by Air Canada issuing a 72-hour lockout notice the same day. Flight attendants commenced strike action just after midnight on Saturday, August 16, which was met with a lockout by Canada’s largest airline. The initiation of strike activity led to immediate and widespread operational disruption.
Government Intervention
The federal government intervened quickly. Within 12 hours of the commencement of strike activity, Jobs and Families Minister Patty Hajdu invoked Section 107 of the Canada Labour Code (the “Code”), directing the Canada Industrial Relations Board (the “CIRB”) to issue an order requiring flight attendants to return to work and referring the dispute to binding arbitration.
Use of section 107 to end labour disruption seems to be happening with regularity. Recall that Labour Minister Seamus O’Regan used his powers under section 107 to direct WestJet and its aircraft mechanics to binding arbitration to settle the terms of a first collective agreement on June 24, 2024. Labour Minister Steven MacKinnon invoked Code provisions on August 22, 2024, in the railway dispute shortly after labour disruptions began. Minister MacKinnon would go on to issue directives under section 107 on November 12, 2024, to end labour disruptions at ports in British Columbia and Montreal, and then on December 13, 2024, to end the Canada Post strike.
Strike Declared Illegal
The CIRB issued an order sending the parties to binding arbitration on Sunday, August 17, following Minister Hadju’s directive. The strike continued, however, as CUPE declined to comply with the CIRB’s order and instead initiated a challenge before the Federal Court.
On Monday, August 18, upon the application of Air Canada, the CIRB issued a ruling formally declaring the strike illegal and directed CUPE leadership to revoke its declaration or authorization of strike activities. CUPE’s national president, Mark Hancock, responded that the union would “stay strong,” even if fines or jail time followed. In response, Air Canada estimated over 500,000 customers’ flights were impacted, and it was forced to cancel approximately 1,000 flights to date.
Such instances of overt defiance of back-to-work directives are uncommon in Canadian labour relations. Notoriously, during the 1972 Quebec Common Front Strike, several union leaders were arrested and jailed for their part in encouraging union members to defy lawmakers after the Quebec government adopted a bill legislating an end to the general strike. Recently in Alberta, the Alberta Union of Public Employees was ordered to forfeit over $1.6 million in union dues following its endorsement of a wildcat strike by healthcare workers in 2020.
Balancing Labour Rights and Public Interest
At its core, this case raises questions about how the Canada Labour Code balances collective bargaining rights with the federal government’s authority to intervene when economic or public interests are at risk. Section 107 of the Code, which allows the minister to direct binding arbitration and end a work stoppage, is intended as an emergency tool. But its use so early in this dispute has prompted debate over whether such interventions erode workers’ constitutional right to strike. Legal challenges to section 107 such as those commenced by CUPE and the Teamsters Canada Rail Conference in relation to the 2024 railway labour dispute, could clarify how far back-to-work powers extend in federally regulated sectors where disruptions quickly ripple through the national economy.
Trusted Counsel in Labour Relations
For questions about labour relations and labour disputes, please contact Stephen Torscher, Partner and Co-Chair of our Employment and Labour Law Group. Stephen is frequently sought out by national media for his commentary on major labour disputes and has extensive experience guiding employers through complex negotiations and conflict resolution.
Author
Stephen Torscher
Partner and Employment and Labour Law Group Co-Chair
T: 403.705.3660
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