Air Canada and its flight attendants have formally entered an arbitration process to resolve a long-standing wage dispute, following the breakdown of mediation efforts under an agreement reached last year to end a major strike.
The Air Canada Component of the Canadian Union of Public Employees (CUPE) confirmed that arbitration was triggered after flight attendants overwhelmingly rejected the airline’s final wage proposal. In a vote held in September 2025, more than 99 per cent of participating members voted against Air Canada’s offer.
Despite the rejection, both the union and the airline had previously agreed that wages would be settled through mediation and, if necessary, binding arbitration. Mediation failed to produce an agreement, paving the way for the current arbitration process.
The wage dispute traces back to August 2025, when more than 10,000 Air Canada flight attendants walked off the job. The strike, which took place during the peak summer travel season, forced the airline to cancel numerous flights and disrupted travel plans for thousands of passengers across Canada and internationally.
While wages remain unresolved, much of the broader collective agreement is already finalized. Key contract provisions covering pensions, health benefits, and vacation entitlements were agreed upon by both sides as part of the deal that ended the strike.
The arbitration outcome is expected to bring finality to the wage issue and conclude one of the most significant labour disputes in Air Canada’s recent history. No timeline has yet been announced for when a decision will be issued.
