Key Takeaways
- Over 10,000 Air Canada (AC) flight attendants, represented by the Canadian Union of Public Employees (CUPE), officially went on strike, leading to the suspension of all Air Canada and Air Canada Rouge operations.
- The strike, effective 12:58 a.m. ET on Saturday, August 16, 2025, is impacting approximately 130,000 customers daily and has resulted from an impasse over wages and compensation for unpaid work.
- Air Canada (AC) had begun a phased wind-down of operations and canceled hundreds of flights in anticipation of the work stoppage, while the union rejected the airline's proposal for binding arbitration.
More than 10,000 flight attendants at Air Canada (AC) and Air Canada Rouge, represented by the Canadian Union of Public Employees (CUPE), officially launched a strike early Saturday, August 16, 2025, after failing to reach a new collective agreement with the airline. The work stoppage began at 12:58 a.m. ET, leading to the immediate suspension of all Air Canada and Air Canada Rouge flights.
The dispute centers on stalled contract negotiations, with CUPE citing "poverty wages" and a lack of compensation for unpaid work, such as time spent during boarding and ground duties. The union asserts that an 8% wage increase offered by Air Canada in the first year is insufficient to offset the impact of inflation and the erosion of purchasing power over their previous 10-year contract. Conversely, Air Canada (AC) stated it had offered a comprehensive proposal including a 38% total compensation increase over four years, covering wages, benefits, and pensions.
In anticipation of the strike, Air Canada (AC) had issued a 72-hour lockout notice in response to CUPE's strike notice and began a phased wind-down of its operations on Thursday, August 14. This proactive measure led to the cancellation of hundreds of flights, affecting tens of thousands of passengers. The airline typically operates around 700 flights per day.
The strike is expected to impact approximately 130,000 customers daily, with an estimated 25,000 Canadian travelers potentially stranded abroad during the peak summer travel season. While Air Canada and Air Canada Rouge flights are suspended, regional Air Canada Express flights, operated by third-party airlines like Jazz Aviation and PAL Airlines, are not affected by the strike.
Federal Jobs Minister Patty Hajdu had urged both parties to reach an agreement, but CUPE declined Air Canada's (AC) request for government-directed binding arbitration, maintaining its right to strike. Air Canada (AC) is advising affected customers not to go to the airport without a confirmed new booking and is offering options for free flight changes or refunds.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.