Air Canada crews reject wage deal, dispute moves to mediation

Published on Sep 8, 2025, 6:41 am CDT

6 min read

Air Canada's flight attendants have overwhelmingly rejected a tentative wage agreement, sending the dispute into mediation while flights continue to operate. The Canadian Union of Public Employees, representing cabin crews at Air Canada and Air Canada Rouge, said 99.1 percent voted against the offer. The deal, reached on August 19 to end a four-day strike, included new ground-time pay and across-the-board increases, but crews said it failed to match living costs. Under a prior pact, both sides agreed to no strike or lockout while outstanding wage issues proceed to mediation, then arbitration if needed.

Key Points

Why it matters: A major North American cabin-crew wage dispute shifts to mediation, with operations continuing.
Travel impact: No strike or lockout during mediation, so schedules should operate normally absent unrelated disruptions.
What's next: If mediation does not resolve wages, the issue goes to binding arbitration under the parties' agreement.
Rejected by 99.1 percent of voting flight attendants across Air Canada and Air Canada Rouge.
Tentative deal featured pre-flight pay plus wage, pension, and benefit improvements, which crews said were insufficient.

Snapshot

The August 19 agreement that ended a four-day strike had promised wage increases and the introduction of pre-flight pay, addressing a long-standing concern over uncompensated ground duties. After a ratification vote closed on September 6, 2025, 99.1 percent of Air Canada and Air Canada Rouge flight attendants voted no. Per the August deal, both sides committed to avoid further labor disruptions, so operations continue while the wage issue moves to mediation, then arbitration if needed. Air Canada says the package improved wages, pensions, and benefits, and added ground-time compensation. Crews counter that the offer does not keep pace with costs in high-price bases, and does not fully pay the whole duty day from clock-in to clock-out.

Background

The strike began on August 16, 2025, after months of negotiations failed to secure a new contract. Government efforts to halt the action did not immediately resolve the standoff, and Air Canada gradually restored operations only after a mediated August 19 agreement. That tentative contract introduced limited pre-flight pay and set out wage increases over four years, with retroactivity to April 1, 2025. It also included a contingency framework, stating that if members voted the deal down, the wage issue would proceed to mediation, then arbitration, with no strike or lockout permitted. The vote rejection underscores a broader North American push by flight attendants to be paid for their entire duty period, not just time in the air, a standard many crews argue lags behind the actual safety and service duties performed before departure and after arrival.

Latest Developments

Mediation begins while flights operate as normal

Air Canada confirms that operations will continue without labor disruption while the wage portion of the contract heads to mediation, consistent with the August 19 framework. If mediation fails to bridge the gap, the outstanding issue proceeds to arbitration, removing the immediate risk of a renewed strike or a lockout. The union's 99.1 percent rejection reflects deep dissatisfaction, including from senior crews who say the offer did not keep pace with inflation in bases such as Toronto. Labor leaders in the United States say the vote adds momentum to similar campaigns for full-duty-day pay across major carriers. The airline maintains that its proposal improved wages, pensions, and benefits, and that it added ground-time compensation for pre-flight duties, aligning with a growing industry trend to address previously unpaid work on the ground.

Pay structure at issue, including pre-flight compensation

The tentative four-year contract offered roughly a 20 percent wage increase for entry-level attendants and about 16 percent for senior staff, plus pre-flight pay of 60 minutes on narrow-body aircraft and 70 minutes on wide-bodies. That pre-flight pay would start at 50 percent of the hourly rate in year one and rise to 70 percent by year four. Air Canada characterizes this as a meaningful step toward compensating ground duties, while keeping overall costs manageable. Crews say the structure still leaves significant portions of the duty day unpaid and does not reflect higher living costs, leading some attendants to hold multiple jobs. Union officials also described the August 19 deal's circumstances, noting it was finalized with a mediator in a Toronto airport hotel as potential legal consequences loomed if no progress was made, a context that amplified member skepticism.

Analysis

For travelers, the immediate takeaway is stability. By design, there will be no strike or lockout during mediation, and if necessary arbitration, which reduces the risk of short-notice cancellations tied to this labor dispute. That framework separates service reliability from bargaining volatility, an approach that other carrier-union pairs may study during peak periods. Operationally, Air Canada benefits from time to plan crews and capacity, and customers benefit from clearer expectations while the wage issue is adjudicated.

Strategically, the rejection signals that partial pre-flight pay and mid-teens raises for senior crews are not sufficient to secure ratification in high-cost markets. The union's push aligns with a broader North American trend, where attendants seek compensation from check-in through block-in, arguing the safety-critical work during boarding and ground delays is undervalued. Airlines, facing tight margins and competitive fare environments, are testing phased approaches such as capped minutes of pre-flight pay at fractional rates. Mediation will probe whether Air Canada can refine ground-time compensation, smooth wage progression, or add quality-of-life items that address member priorities while preserving financial flexibility.

The public support observed during the August strike, plus parallel U.S. bargaining dynamics, raises stakes beyond Canada. A mediated or arbitrated outcome that expands ground-time pay could reverberate across the continent, influencing wage structures at peer carriers. Conversely, if arbitration largely upholds the airline's offer, unions may recalibrate tactics, focusing on work-rule and scheduling wins. Either path will be watched closely by travelers and industry analysts as a potential template for future cabin-crew agreements.

Final Thoughts

Expect Air Canada's schedules to remain stable through mediation, then arbitration if required. The central question is not whether crews will be paid for ground duties, but how much, for how long, and at what rate relative to flight time. A settlement that better recognizes the full duty day, while maintaining operational efficiency, is most likely to gain member support and protect the travel experience. Whatever the outcome, the decision will influence cabin-crew bargaining throughout North America. We will continue to track milestones that materially affect travelers and operations tied to Air Canada flight attendants.