The Canadian government has taken steps to end the ongoing strike by Air Canada’s cabin crews, asking for binding arbitration to resolve the contract impasse. The move comes after nearly 100,000 passengers were affected by the stoppage, which was sparked by a dispute over compensation for time spent on the ground and when helping passengers board.
The government, led by Jobs Minister Patty Hajdu, is seeking to impose binding arbitration on both sides, with the goal of ending the strike and restoring Air Canada’s operations as soon as possible. The Canadian Union of Public Employees (CUPE) has opposed this move, saying it would be unfair to the unionized flight attendants.
Air Canada had initially sought a negotiated solution but ultimately asked the government to make the request for binding arbitration. The airline canceled nearly all of its 700 daily flights, causing widespread disruption to travelers.
The strike is also linked to broader issues in Canadian trade policy, including ongoing tensions with the US over tariffs imposed by the Trump administration on U.S.-bound shipments.
While some businesses have urged the government to take action to end the strike, others have voiced support for the flight attendants. The Canadian Chamber of Commerce has welcomed the government’s move, saying it was necessary to protect the economy from the potential impact of the strike.
The dispute is centered around wages and compensation for time spent on the ground, with Air Canada offering a 38% increase in total compensation over four years, while CUPE seeks parity with other carriers. The union has been seeking better pay and working conditions for its members, who currently receive only payment when their plane is moving.
With the government’s move, the strike appears to be nearing an end, but it may take a few days for the industrial relations board to grant binding arbitration and for Air Canada to fully restore its operations.
Source: https://www.reuters.com/business/world-at-work/canadian-government-moves-end-air-canada-strike-seeks-binding-arbitration-2025-08-16