Air Canada to Resume Flights After Government Arbitration Ends Strike

What's Happening?

Air Canada is set to resume flights following a directive from the Canadian Industrial Relations Board (CIRB) to end a strike by the Canadian Union of Public Employees (CUPE). The strike had led to the suspension of over 700 flights. The CIRB's decision, prompted by The Honourable Patty Hajdu, Federal Minister of Jobs and Families, refers the contract negotiations to final binding interest arbitration under section 107 of the Canada Labour Code. This move mandates Air Canada and its flight attendants to return to operations by 14:00 EDT on August 17, 2025. The collective agreement, which expired on March 31, 2025, will be extended until a new agreement is reached. Air Canada plans to gradually ramp up operations, although some flights may be canceled over the next week as the schedule stabilizes.

Why It's Important?

The resolution of the strike and resumption of flights is crucial for Air Canada, its employees, and passengers. The strike had disrupted travel plans for thousands, affecting both domestic and international routes. The arbitration process aims to resolve outstanding issues in the collective agreement, potentially setting a precedent for future labor negotiations in the airline industry. For passengers, the end of the strike means a return to normalcy, although they are advised to check flight statuses due to potential cancellations. The situation highlights the challenges airlines face in balancing labor relations and operational continuity, especially in a post-pandemic travel environment.

What's Next?

Air Canada will focus on stabilizing its flight operations over the coming days. The arbitration process will address unresolved terms in the collective agreement, with outcomes potentially influencing labor relations in the airline sector. Passengers affected by cancellations will be notified of new itineraries, and the airline will continue to inform customers of their rights under Canada's Airline Passenger Protection Regulations. The industry will watch closely how Air Canada navigates this transition, as it may impact future labor negotiations and operational strategies.