Canadian government moves to end Air Canada strike, seeks binding arbitration

News Desk | August 17, 2025 | Breaking News, International | Follow on Google News

Canadian government moves to end Air Canada strike, seeks binding arbitration

OTTAWA, Aug 16 (Reuters) – The Canadian government on Saturday moved to end a strike by Air Canada’s cabin crews and require binding arbitration to break their contract impasse, an action that the country’s largest carrier had sought but unionized flight attendants fiercely opposed.

Thousands of Air Canada (AC.TO) flight attendants walked off the job for the first time since 1985, just before 1 a.m. EDT (0500 GMT), after months of negotiations over a new contract. In anticipation of the stoppage, the airline canceled nearly all of its 700 daily flights, forcing more than 100,000 travelers to scramble for alternatives or stay put.

The most contentious issue in the contract negotiations has been the union’s demand for compensation for time spent on the ground between flights and when helping passengers board. Attendants are now largely paid when their plane is moving.

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Jobs Minister Patty Hajdu said at a news conference she had asked the Canada Industrial Relations Board to impose binding arbitration on both sides and order an immediate end to the strike. Still, she told reporters it may take 24 to 48 hours for the board to complete that work, while Air Canada has said restarting operations after a strike would take a week to complete.

“This is not a decision that I’ve taken lightly, but the potential for immediate negative impact on Canadians and our economy is simply too great,” Hajdu said.

Air Canada had asked Prime Minister Mark Carney’s minority Liberal government to make the request, but the Canadian Union of Public Employees said it wanted a negotiated solution, as binding arbitration would take pressure off the airline.

The union said it has asked the CIRB’s chairperson to recuse herself from hearing the case in a virtual session on Saturday afternoon because she has worked in the past as a senior counsel at Air Canada. The carrier declined comment on Hajdu’s decision and hearing as the process is underway.

Hajdu said the government preferred negotiated settlements to labor disputes, but the current impasse showed the two sides would not find a solution soon enough to spare the economy further damage.