Air Canada CEO Shocked by Union's Defiance of Strike Ruling

Post by : Monika

Photo: Reuters

Air Canada, the country's largest airline, is facing serious operational challenges due to a strike by its flight attendants. Over 10,000 attendants, represented by the Canadian Union of Public Employees (CUPE), have been on strike since August 16, 2025. Their main demands include higher wages and compensation for unpaid duties such as boarding passengers and performing ground work.

The strike has disrupted travel plans for hundreds of thousands of passengers, especially during the busy summer travel season. Despite a ruling by the Canada Industrial Relations Board declaring the strike illegal and ordering employees to return to work, the union has continued its action, creating a major standoff between the airline and its workers.

Union's Defiance

CUPE’s decision to ignore the government ruling has surprised many and raised concerns. The union insists the strike will continue until Air Canada addresses their demands about wages and unpaid work. This situation has sparked debates about balancing workers’ rights to strike with the legal rules governing labor disputes in Canada.

The union’s actions have affected not only airline operations but also drawn public attention to broader issues of labor rights and corporate responsibility. While some passengers support the attendants’ demands, others are frustrated by the ongoing disruptions.

Air Canada's Response

In response to the strike, Air Canada has suspended its profit forecasts for the third quarter and the full year, citing the labor dispute’s major impact on its operations and finances.

CEO Mike Rousseau expressed surprise at the union’s defiance of the government ruling. He highlighted that the airline had made a fair and comprehensive offer, including a 38% compensation increase over four years. The union, however, argues this offer effectively results in only a 17.2% wage increase and does not cover unpaid work.

Rousseau urged the striking flight attendants to return to work, stressing that the strike is illegal and harms both the airline’s operations and reputation. He also noted that restoring full operations could take up to ten days once employees return.

Impact on Passengers and Operations

The strike has led to numerous flight cancellations, affecting roughly 130,000 passengers daily. This disruption has caused significant inconvenience, especially during the peak summer travel period. Air Canada has been trying to ease the impact by rebooking passengers and offering refunds where possible.

However, returning to normal operations depends entirely on resolving the labor dispute. The prolonged strike has also contributed to a decline in Air Canada’s stock price, reflecting investors’ concerns about the financial impact of the ongoing conflict.

Government's Role

The Canadian government has been closely monitoring the situation. Minister of Jobs Patty Hajdu has called for both sides to return to negotiations and resolve the dispute quickly. The government’s involvement highlights the importance of maintaining labor peace and ensuring stability in essential services like air travel.

However, the government’s ability to intervene is limited by legal constraints. A Supreme Court ruling emphasizes caution when restricting the right to strike, making direct intervention challenging. Consequently, the government is relying on diplomatic efforts and public pressure to encourage both parties to reach an agreement.

Broader Implications

The Air Canada strike highlights broader challenges in Canada’s airline industry and labor relations. The attendants’ demands for compensation for unpaid work reflect concerns about fair labor practices and employee treatment in the service sector.

The strike also raises questions about labor laws and enforcement. The union’s defiance of a government ruling underscores the tension between workers’ rights and legal obligations.

The outcome of this dispute could set an important precedent for future labor relations in Canada, particularly in sectors where unions have a strong influence. It also underscores the need for ongoing dialogue and negotiation between employers and employees to prevent conflicts and address grievances fairly.

The ongoing strike by Air Canada’s flight attendants has become a major issue affecting both the airline and the wider labor landscape in Canada. The union’s defiance of a government ruling has intensified the situation, causing disruptions for passengers and financial challenges for the airline.

As negotiations continue, the hope remains that a fair resolution can be reached—one that addresses the flight attendants’ concerns while restoring stability and reliability to Air Canada’s operations. This situation highlights the complexities of labor relations and the importance of clear communication and negotiation in resolving disputes.

flight attendants