Air Canada flight attendants, via their union, rejected a recent wage offer that included a 12% salary increase for junior staff and 8% for senior members, plus smaller future raises.

However, flight attendants overwhelmingly rejected a four-year offer, deeming a 17.2% wage increase inadequate after a decade of inflation. CUPE reported a 99% no-vote with 99.4% turnout, according to the Epoch Times.

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“Even with the proposed increase, Air Canada flight attendants would still earn less than federal minimum wage, which is $17.75 per hour or $2,840 per month on a 40-hour workweek,” the union said in a statement. 

Full-time monthly earnings for Air Canada Rouge flight attendants are $2,219, while Air Canada flight attendants earn $2,522.

Flight attendants dispute Air Canada's 38% total compensation offer over four years, citing only a 17.2% wage increase that trails a decade of inflation.

READ MORE: https://t.co/J1TGMJFrfm pic.twitter.com/M2f91VdRUm

— Rebel News (@RebelNewsOnline) August 18, 2025

Despite the impasse, CUPE reports progress on unpaid work, securing partial pay for flight attendants' ground duties. Air Canada and the union will now use a mediator for future talks.

“Air Canada and CUPE contemplated this potential outcome and mutually agreed that if the tentative agreement was not ratified, the wage portion would be referred to mediation and, if no agreement was reached at that stage, to arbitration,” reads a statement from Air Canada.

Both parties agreed to avoid labour disruptions, ensuring flights continue as scheduled. Despite initial union objections, the airline remains committed to mediation and arbitration.

On August 16, roughly 10,000 flight attendants struck after contract talks with the airline failed. Unpaid work and wages were the main issues, the union stated.

The strike impacted an estimated 500,000 travellers due to cancelled flights.

Labour minister claims Air Canada strike delayed organ shipments

The claim follows a pattern by Minister Patty Hajdu, repeatedly fabricating tall tales in an attempt to legitimize strike bans.https://t.co/ZvkE4qnMG3

— Rebel News (@RebelNewsOnline) August 19, 2025

Soon after, Federal Jobs Minister Patty Hajdu invoked Section 107 of the Labour Code, requesting the Canadian Industrial Relations Board (CIRB) to intervene. It drew criticism from Conservatives and New Democrats. 

The CIRB ordered flight attendants back to work by August 17, maintaining current agreement terms until a new one is signed. CUPE defied the back-to-work order, calling it unconstitutional, prompting a Federal Court challenge.

On August 19, a mediated agreement was reached, with flight attendants agreeing to return to work and neither side initiating a strike or lockout during ratification or binding arbitration.

Conservative MP Kyle Seeback proposed legislation, stating, “No worker … should be forced, especially by the government, to work without being paid.”

NDP Interim Leader Don Davies criticized Minister Hajdu's "blatant misuse" of Section 107, now challenged in court. 

Hajdu cited potential immediate negative impacts on Canadians and the economy. The Liberal government previously used this mechanism in labour disputes, including an August 2024 railyard lockout and strike.