Air Canada to Resume Flights Following Government Intervention

In a significant development for travelers, Air Canada announced plans to restart its flight operations on Sunday after the Canadian government intervened, compelling the airline and its striking flight attendants to return to work and enter arbitration. The strike had left over 100,000 passengers stranded globally during a peak travel season.

According to a statement released by Air Canada, the resumption of flights will begin Sunday evening; however, the airline cautioned that it may take several days for operations to normalize. Passengers should anticipate some flight cancellations over the next week as the airline works to stabilize its schedule.

Less than 12 hours after the strike commenced, Federal Jobs Minister Patty Hajdu issued an order for the 10,000 flight attendants to return to work, citing concerns about the economy and the unprecedented tariffs imposed by the U.S. on Canadian goods. The work stoppage has been referred to the Canada Industrial Relations Board for resolution.

The airline's announcement highlighted that the existing collective agreement's terms have been extended until a new agreement is reached through arbitration. The strike impacted approximately 130,000 passengers each day, as Air Canada operates around 700 flights daily.

By Saturday afternoon, the airline had canceled 671 flights, with an additional 96 flights already suspended for Sunday. This escalation followed the union's rejection of Air Canada's prior request to enter government-directed arbitration, which would allow a neutral party to mediate the contract negotiations. The flight attendants initiated the strike at 1 a.m. EDT on Saturday, coinciding with Air Canada's announcement that it would begin locking out flight attendants at airports.

This situation mirrors a previous incident in which the Canadian government intervened during a labor dispute involving the country's two major railroads, compelling them into arbitration as well. The union representing rail workers has since initiated legal action, claiming that such government interventions undermine the bargaining power of unions.

The Business Council of Canada had advocated for similar government intervention in the airline dispute, and the Canadian Chamber of Commerce expressed support for the decision. Minister Hajdu asserted that the Liberal government is not opposed to unions but emphasized the urgency of addressing the impasse between the two sides.

Passengers whose flights have been affected are eligible to request full refunds via Air Canada's website or mobile application. The airline also indicated that alternative travel options may be provided through other Canadian and international carriers when feasible. However, due to the high demand during the summer travel peak, immediate rebooking cannot be guaranteed.

Negotiations between Air Canada and the Canadian Union of Public Employees have been ongoing for approximately eight months, but significant differences remain, particularly regarding compensation and the issue of unpaid work performed by flight attendants when planes are not in operation.

Air Canada's latest proposal included a total compensation increase of 38% over four years, which the airline claims would position its flight attendants as the highest compensated in Canada. However, the union has rejected this offer, asserting that the proposed 8% raise in the first year falls short of adequately addressing inflation.