Toronto, August 19, 2025 (Agencies) — Air Canada is set to resume flight operations Tuesday evening after reaching a tentative agreement with the Canadian Union of Public Employees (CUPE), ending a disruptive four-day strike that grounded hundreds of flights and stranded over 500,000 passengers across domestic and international routes.
The breakthrough came after nine hours of negotiations facilitated by a government-appointed mediator. CUPE, which represents more than 10,000 flight attendants, announced the deal early Tuesday, calling it a “historic fight” that achieved “transformational change” for workers and the airline industry.
“Unpaid work is over,” CUPE declared in its statement, referencing long-standing grievances over uncompensated ground duties such as boarding and pre-flight waiting. The union instructed its members to fully cooperate with the resumption of operations.
Air Canada confirmed the agreement and said flights would begin to restart Tuesday evening, though full restoration of services may take seven to ten days due to aircraft and crew being out of position. “Restarting a major carrier like Air Canada is a complex undertaking,” said CEO Michael Rousseau, adding that the airline deeply regrets the disruption caused to passengers.
The strike began Saturday after CUPE rejected Air Canada’s initial offer of a 38% increase in total compensation over four years, including a 25% raise in the first year. The union argued the proposal was “below inflation, below market value, below minimum wage,” and failed to address unpaid hours.
Tensions escalated when CUPE defied two back-to-work orders issued by the Canadian Industrial Relations Board (CIRB), which had deemed the strike unlawful. The union also rejected a government directive to enter binding arbitration, accusing officials of “caving to corporate pressure.”
Federal Jobs Minister Patty Hajdu later urged both parties to resume talks and announced a forthcoming probe into allegations of unpaid labor in the airline sector.
While the full terms of the agreement remain undisclosed pending ratification, Air Canada has indicated that the deal includes boarding pay at half the normal hourly rate, increasing to 70% over the four-year term. The airline also pledged improvements to health benefits, pensions, and work-life balance measures.
Industry observers say the strike has spotlighted systemic issues in aviation labor practices and may set a precedent for future negotiations across North America.
Air Canada, the country’s largest airline, operates approximately 700 flights daily to over 180 destinations worldwide. The strike’s resolution is expected to gradually restore normalcy to Canada’s air travel network.