Air Canada Halts Restart Plans as Flight Attendants Reject Return-to-Work Order

Air Canada Delays Resumption of Flights Amid Ongoing Labor Dispute

Air Canada has postponed its plans to restart operations on Sunday following a decision by the union representing 10,000 flight attendants to defy a return-to-work order. This ongoing strike has already disrupted travel for approximately 130,000 passengers daily during the peak summer travel season.

The Canada Industrial Relations Board (CIRB) had previously ordered airline staff to return to work by 2 p.m. on Sunday after the federal government intervened. Air Canada initially planned to resume flights in the evening, but it now states that operations will resume on Monday evening instead.

In a statement, Air Canada accused the union of “illegally directing its flight attendant members to defy a direction from the Canadian Industrial Relations Board.” The union, however, has refused to comply with the order. Mark Hancock, national president of the Canadian Union of Public Employees (CUPE), stated outside Toronto’s Pearson International Airport, “Our members are not going back to work. We are saying no.”

The federal government did not immediately respond to the union's refusal to return to work. Hancock criticized the process as unfair and indicated that the union would challenge what it calls an unconstitutional order. He also claimed that Air Canada avoided negotiations, knowing the government would step in to resolve the situation.

Federal Jobs Minister Patty Hajdu had ordered the 10,000 flight attendants back to work less than 12 hours after they walked off the job. She emphasized that now is not the time to take risks with the economy, especially given the unprecedented tariffs the U.S. has imposed on Canada. Hajdu referred the work stoppage to the CIRB.

According to Air Canada, the CIRB has extended the term of the existing collective agreement until a new one is determined by an arbitrator. The shutdown of the country’s largest airline, which began early Saturday, has been affecting about 130,000 people per day. Air Canada operates roughly 700 flights daily.

Flight attendants walked off the job around 1 a.m. EDT on Saturday. Shortly after, Air Canada started locking them out of airports. The contract dispute escalated earlier in the week when the union rejected Air Canada’s request for government-directed arbitration, which allows a third-party mediator to determine the terms of a new contract.

This is not the first time the government has intervened in labor disputes. Last year, the government forced the country’s two major railroads into arbitration during a work stoppage. The rail workers’ union is currently suing, arguing that the government is undermining their negotiating power.

The Business Council of Canada had urged the government to impose binding arbitration in this case as well. The Canadian Chamber of Commerce also welcomed the intervention. Hajdu maintained that her Liberal government is not anti-union, stating that the two sides are at an impasse.

Passengers affected by the disruptions can request a full refund through Air Canada’s website or mobile app. The airline is also offering alternative travel options via other Canadian and foreign airlines when possible. However, it warned that immediate rebooking may not be guaranteed due to high demand during the summer travel peak.

Air Canada and CUPE have been engaged in contract negotiations for about eight months without reaching a tentative deal. Both parties remain far apart on issues such as pay and the unpaid work flight attendants perform when planes are not in the air.

Air Canada’s latest offer included a 38% increase in total compensation over four years, including benefits and pensions, which the airline claimed would make flight attendants the best-compensated in Canada. However, the union argued that the proposed 8% raise in the first year was insufficient given current inflation rates.