Air Canada to resume flights after government forced arbitration with flight attendants

Air Canada has announced its plans to resume flights on Sunday following government intervention in the ongoing strike with its flight attendants. The strike, which began on Saturday, left more than 100,000 travelers stranded worldwide during the peak summer travel season. The Canadian government stepped in to force the airline and its striking employees back to work and into arbitration.

According to Air Canada, flights will gradually resume on Sunday evening, but it may take several days for operations to return to normal. Some flights are expected to be canceled over the next seven to 10 days until the schedule is stabilized. Despite the airline’s statement, Nathalie Garceau, a spokesperson for the Canadian Union of Public Employees, stated that demonstrations will continue across Canada.

The Federal Jobs Minister, Patty Hajdu, ordered the 10,000 flight attendants back to work less than 12 hours after the strike began, citing the need to avoid risks to the economy and the impact of tariffs imposed by the U.S. The Canada Industrial Relations Board has extended the term of the existing collective agreement until a new one is determined by an arbitrator. The shutdown of Air Canada, which operates around 700 flights per day, was affecting approximately 130,000 people daily.

The contract dispute escalated when the union rejected Air Canada’s proposal for government-directed arbitration. This type of arbitration allows a third-party mediator to decide the terms of a new contract. Flight attendants walked off the job early Saturday morning, prompting Air Canada to announce plans to lock them out of airports.

Last year, the Canadian government intervened in a similar labor dispute involving the country’s major railroads, sending them to arbitration with their union. The Business Council of Canada and the Canadian Chamber of Commerce supported the government’s decision to intervene in the Air Canada strike. Hajdu emphasized that the government is not anti-union but recognized that both sides were at an impasse.

Passengers affected by flight cancellations are eligible for a full refund through the airline’s website or mobile app. Air Canada also stated that it would offer alternative travel options through other airlines, although immediate rebooking may not be guaranteed due to high demand during the summer travel peak. Contract negotiations between Air Canada and the Canadian Union of Public Employees have been ongoing for eight months, with pay and unpaid work issues remaining key points of contention.

The airline’s latest offer included a 38% increase in total compensation over four years, which it claimed would make its flight attendants the best compensated in Canada. However, the union argued that the proposed 8% raise in the first year was insufficient to keep up with inflation. Both sides remain at odds on these issues as they work towards reaching a mutually acceptable agreement.