Published on
September 7, 2025
Canada is now grappling with an explosive labor showdown as Air Canada flight attendants have overwhelmingly rejected a proposed forty percent pay increase. This monumental decision has intensified the ongoing conflict between the airline and its staff, fueling widespread uncertainty and escalating tensions across the country. With the rejection of the colossal pay package, which was designed to address long-standing grievances, the situation is primed for further disruptions, leaving both the airline and passengers in a state of uncertainty as negotiations continue.
Nearly all of Air Canada’s over 10,000 flight attendants have voted to reject the airline’s most recent contract offer, extending a labor dispute that already led to significant disruptions in August. This overwhelming rejection came after flight attendants staged a three-day strike in late summer, causing the cancellation of more than 2,000 flights. The strike was a result of ongoing frustrations over their compensation and working conditions, and although the airline and union had reached a tentative agreement, it was ultimately deemed unsatisfactory by the majority of flight attendants.
The dispute began in earnest earlier this year when negotiations between Air Canada and the union, representing the flight attendants, broke down. The airline had made a series of proposals, but union members argued that the terms did not adequately address their concerns. This led to the strike, which resulted in the cancellation of hundreds of flights across the airline’s network. The dispute appeared to be on the verge of escalating into a full-blown labor crisis until a tentative agreement was put forward by the airline. However, as of the recent vote, the union’s members overwhelmingly rejected the deal, with 99.1% voting against it, signaling that the conflict is far from over.
According to a Saturday post on the union’s website, nearly all of the membership voted, with 94.6% of members participating in the vote. The decision to reject the offer sets the stage for renewed mediation between the two sides. Both Air Canada and the union have indicated that no further strikes or lockouts are expected in the immediate future as they return to the bargaining table. The Canadian government’s involvement in the mediation process could provide an avenue to avoid further disruptions.
The crux of the dispute lies in the airline’s compensation offer, which included a total wage increase of 40% over four years. This package also included pension contributions, enhanced benefits, and provisions for ground pay duties. However, despite these increases, the flight attendants felt that the proposal still failed to meet their basic financial needs. The union argued that even with the wage increases, the flight attendants would still be earning less than the federal minimum wage in Canada, leaving many members struggling to make ends meet. The union made it clear that this situation was unacceptable, with members arguing that they are not adequately compensated for the demands of their work.
The contract proposal from Air Canada included wage hikes of 8% to 12%, retroactive to April 1, with annual increases in the subsequent years of 3%, 2.5%, and 2.75%. While these increases were seen as a positive step by the airline, flight attendants were quick to point out that they would not provide sufficient relief for workers who already feel underpaid. In particular, flight attendants have long struggled with a pay structure that only compensates them while the aircraft is in motion. The industry-standard practice has been to only pay workers during flight time, which does not account for the time spent preparing for flights or dealing with delays.
The proposed contract did include a new provision that would compensate flight attendants for pre-flight duties, including 60 to 70 minutes of pay at half the regular hourly rate, depending on the size of the aircraft. However, this compensation would still fall short of what flight attendants feel they deserve. The deal would eventually increase this pre-flight pay to 70% of the hourly rate, but many cabin crew members remain unsatisfied with this arrangement, arguing that it does not adequately compensate them for the extensive work they do before takeoff.
While Air Canada was quick to emphasize that the agreement had been reached without major concessions from the union, the airline reiterated that it remains committed to the mediation process, signaling that further negotiations could lead to arbitration if needed. The airline’s representatives argue that the contract offer was a fair and comprehensive deal, but the flight attendants clearly disagree. They are pushing for better compensation and more respect for the complexity and demands of their roles.
The situation is exacerbated by the broader context of labor disputes in the airline industry. Over the past 18 months, many major U.S. airlines have negotiated new contracts with their flight crews, and some of these deals have included significant gains, including boarding pay. In 2022, Delta Air Lines became the first major U.S. carrier to introduce boarding pay for its flight attendants, a move that was praised as a step forward for the industry. Other U.S. carriers, such as American Airlines and Southwest, have since followed suit, making it clear that U.S. flight attendants are increasingly being compensated for the time spent on the ground, rather than just when they are in the air. United Airlines is still in the process of negotiating its new deal with flight attendants, but the inclusion of boarding pay is expected to be a key point of discussion.
In comparison, Air Canada has been slow to adapt to these changes. The lack of adequate compensation for pre-flight duties has been a longstanding grievance among flight attendants in Canada, and it appears to be a central point of contention in the ongoing labor dispute. The rejection of the contract offer suggests that the airline’s flight attendants are unwilling to settle for a deal that does not address these issues in a meaningful way.
Canada is facing an explosive labor showdown as Air Canada flight attendants have rejected a proposed forty percent pay increase. This decision has intensified disputes, fueling widespread uncertainty and unrest across the country.
Looking ahead, the outcome of the ongoing negotiations between Air Canada and the union will likely set a precedent for the rest of the airline industry in Canada. As labor disputes in the airline sector continue to unfold, the issue of adequate compensation for flight attendants is likely to remain a hot topic, with workers pushing for greater recognition of the work they do both in the air and on the ground. The resolution of this dispute will be closely watched by both industry insiders and passengers alike, as it could have significant implications for the future of airline labor relations in Canada.
