Air Canada faced an unprecedented crisis on Sunday when 10,000 striking flight attendants refused a government back-to-work order. The Canadian Industrial Relations Board described the defiance as “unlawful,” forcing the airline to suspend operations and cancel flights for half a million passengers.
The labor dispute has resulted in over 2,300 canceled flights this week alone, impacting more than 500,000 customers. Air Canada’s stock plummeted by 1.5% on Monday morning as indexes remained mostly flat.
Air Canada’s flight attendants walked off the job eight months ago after negotiations with the airline failed to reach an agreement. The Canadian government intervened, asking for binding arbitration, but the union representing the flight attendants defied the order, leading to the suspension of operations.
The main issue in the dispute is the payment of boarding pay, which has been a long-standing point of contention for flight attendants worldwide. Unlike most airlines, Air Canada only pays its staff when the aircraft doors are closed for a flight, excluding their time spent on duty before and after the flight.
Major US carriers have recently begun paying their flight attendants for boarding time, with some starting this year. However, Air Canada remains steadfast in its refusal to change its policy.
The situation remains uncertain, leaving millions of passengers affected by canceled flights.
Source: https://www.forbes.com/sites/suzannerowankelleher/2025/08/18/air-canada-suspends-all-flights-flight-attendant-strike