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Air Canada could ground the majority of its flights as soon as August 16th since contract negotiations with the Canadian Union of Public Employees (CUPE), which represents more than 10,000 flight attendants at Air Canada and Air Canada Rouge, officially reached an impasse. Unless a last-minute deal is reached, CUPE could issue a 72-hour strike notice as early as 12:01 AM on August 13th and set the stage for mass flight cancellations.
The fight centers around wage increases and working conditions for the largest Canadian carrier’s flight attendants. Here is a breakdown of what has broken down:
Air Canada:
- Flight attendants were offered a 38% total increase over four years (including 25% in year one), plus improvements to pensions, benefits, and crew rest.
- Introduced ground pay for boarding (though at 50% of the normal hourly rate).
- It has accused CUPE of wasting 10 days of bargaining by refusing talks during the strike mandate vote.
- Air Canada also proposed binding third-party arbitration to resolve the dispute, which CUPE rejected.
- It says the union’s demands amount to “exorbitant” raises.
- This proposal would make Air Canada flight attendants the highest paid in Canada.
Canadian Union of Public Employees (CUPE):
- It says that real wage growth under the proposal would be only 17% over four years and 8% in year one (while inflation has eroded wages by 9%).
- Boarding pay is partial and excludes medical emergencies, fires, evacuations, and other safety and security ground duties.
- CUPE rejects arbitration and claims that arbitrators tend to maintain the status quo, which the union seeks to change.
- It also says it was always open to negotiations and that the airline failed to reach out during the strike vote period.
- It insists its demands are “fair” and affordable given Air Canada’s financial health.
If a strike is called, most Air Canada and Air Canada Rouge flights would be cancelled. Air Canada Express services, operated by Jazz and PAL Airlines, would not likely be impacted, but these account for only about 20% of daily passengers. Air Canada has started preparing for mass cancellations to avoid last-minute disruptions and has made arrangements with other carriers to accommodate impacted travelers. The airline says it’s also considering asking the federal government to impose binding arbitration under the Canada Labour Code, a measure used in past transport disputes.
Under Canada’s Air Passenger Protection Regulations, passengers are not entitled to compensation for cancellations or delays caused by labor disputes. This applies whether the disruption is due to a strike or an employer lockout.
Air Canada and CUPE remain at a stalemate over wages and working conditions. Unless an agreement is reached soon, the airline could see its operations severely curtailed by August 16th. Passengers traveling in the coming weeks are advised to monitor flight updates closely and prepare for disruptions.
Anthony’s Take: Air Canada isn’t the only Star Alliance carrier fighting for a contract. United Airlines flight attendants just recently rejected their latest offer. The biggest difference seems that Air Canada will actually be able to go on strike, while this is highly unlikely to come to be in the United States.
(Image Credits: Air Canada.)
(H/T: Paddle Your Own Kanoo.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
