A three-way standoff between Air Canada, striking flight attendants, and the government has raised stakes in a battle that has disrupted flights for hundreds of thousands of travelers. The Canadian Union of Public Employees claims the airline’s offer accounts for 17.2% higher wages over four years, while CEO Mike Rousseau defended the proposal but said there is a big gap compared with the union’s demand.
The striking union, led by Mark Hancock, refuses to return to work despite a federal labor board’s order. The Canadian Jobs Minister, Patty Hajdu, launched a probe into airline pay and emphasized the need for a negotiated agreement between workers and the company. Hancock said he would risk jail time rather than allow cabin crews to be forced back to work.
The strike has stranded passengers and led Air Canada to suspend its 2025 guidance, sending shares down nearly 3%. The airline normally carries 130,000 people daily but has earned lower profit due to fewer bookings to the United States. Some passengers are growing weary of the uncertainty, while others have expressed support for the flight attendants.
The government’s options to force an end to the strike include asking courts to enforce the order to return to work and legislation. However, it is highly unusual for a union to defy a CIRB order, and the Supreme Court has ruled that governments must be cautious when taking away the right to strike.
Source: https://www.reuters.com/business/world-at-work/air-canada-ceo-sees-big-gap-with-striking-union-minister-orders-airline-pay-2025-08-18