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Air Canada asks for binding arbitration as imminent shutdown looms

Click to play video: 'Closer look at sticking points in Air Canada labour dispute'
Closer look at sticking points in Air Canada labour dispute
RELATED: Closer look at sticking points in Air Canada labour dispute – Aug 14, 2025

Canada’s jobs minister says the union representing Air Canada flight attendants will respond by midday Friday to the airline’s request for her to send the two parties to binding arbitration, as the clock ticks down to a potential strike.

“Yesterday, I asked CUPE Air Canada Flight attendants to respond to Air Canada’s request that I make a referral under Section 107 of the Canada Labour Code to send the parties to binding arbitration,” Patty Hajdu wrote in a statement posted on X on Thursday evening.

“The union asked to have until Friday, Aug. 15 at 12 p.m. Eastern time to respond. I have agreed to that request.”

Despite considering the binding arbitration referral, Hajdu affirmed that “deals that are made at the bargaining table are the best ones” and urged both sides to reach an agreement.

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Click to play video: 'Air Canada to pause nearly all flights by Saturday morning, officials say as strike looms'
Air Canada to pause nearly all flights by Saturday morning, officials say as strike looms

Both the airline and union spoke publicly Thursday, calling on the other side to continue negotiations before a strike or lockout begins Saturday.

Air Canada executives defended its arbitration request Thursday morning, saying they still want to reach a deal at the table despite the union rejecting their recent offers.

“We’re still available for negotiations, we’re still available for consensual arbitration, should that all not materialize, we do have to think about the very serious disruptions that would ensue,” said Arielle Meloul-Wechsler, Air Canada’s executive vice-president, chief human resources officer and public affairs.

“We have asked for the government to consider intervening if we get to that point, but we are doing everything in our power to avoid getting to that point.”

Click to play video: 'Air Canada union takes aim at Feds as company seeks binding arbitration'
Air Canada union takes aim at Feds as company seeks binding arbitration

Speaking with reporters Thursday afternoon,  Wesley Lesosky, president of the Canadian Union of Public Employees’s (CUPE) Air Canada component, criticized the move by the airline.

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“Instead of staying at the table, the company has called on the federal government to intervene on their behalf to interfere with negotiations by taking away our members’ Charter rights to free and fair collective bargaining,” he said.

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“The government cannot change positions now and intervene on Air Canada’s behalf.”

Hajdu’s press secretary Jennifer Kozelj reiterated the government’s preference for a negotiated agreement in a statement to Global News Thursday.

“Both parties need to stay at the table with a commitment to get a collective agreement for workers as soon as possible. Right now, the only focus should be on getting a deal,” Kozelj said.

“This dispute is causing a great deal of anxiety and frustration to Canadians who are travelling or worrying about how they will come home. We strongly urge parties to come to an agreement — do not waste this precious time. Canadians are counting on you.”

Lesosky stressed the union has remained at the bargaining table and has been waiting for a response by Air Canada to the offer it presented Tuesday evening.

Asked how long the strike could go for, Lesosky said he still believes a deal is possible but the company needs to “come with more” in terms of wages – a key sticking point in negotiations.

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“I do think that this is something we can settle at the bargaining table, but it takes two parties to entertain that,” he said. “Unfortunately, again, Air Canada hasn’t come back to discuss wages.”

In a social media post Thursday morning, Hajdu said she’s met with both parties throughout the bargaining process.

She also called the decision by CUPE to issue a strike notice and Air Canada’s notice of lockout was a “disappointing development” for Canadians.

Some flights already cancelled with more to come

With the potential strike and lockout just two days away, Air Canada has already begun to cancel flights in preparation for the potential job action and lockout.

Mark Nasr, executive vice-president and chief operations officer, told reporters “several dozen” cancellations will take place Thursday, impacting mostly long-haul international flights departing this evening.

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He said it’s expected by end of day Friday, about 500 flights will have been cancelled.

“In order to have a safe and orderly wind down, we need to begin now,” Nasr said. “By tomorrow evening, we expect to have cancelled flights affecting over 100,000 customers.”

Nasr said by Saturday morning, the airline’s mainline and Rouge flights will be completely grounded. He said it’s expected to impact 130,000 customers a day, including about 25,000 Canadians daily that are usually brought home from abroad who “risk” being stranded.

Click to play video: 'Consumer Matters: What an Air Canada strike means for passengers'
Consumer Matters: What an Air Canada strike means for passengers

Air Canada has said customers whose flights are cancelled will be notified and they’ll be eligible for a full refund, which can be obtained online or by its mobile app.

Nasr said “every attempt” would be made to rebook customers on more than 120 other airlines, including Air Canada’s competitors, but cautioned peak summer season meant there would be limits.

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For those unable to be accommodated, he said they will have two options, either receive a full refund of their ticket or rebook their travel for a later date without a fee.

Global News reached out to Porter Airlines, WestJet, Flair and Air Transat on Wednesday to inquire about how they’re responding to the looming strike.

Flair and WestJet both replied saying they were monitoring demand trends, with WestJet saying it would explore opportunities to support Canadians in situations there’s an “uncontrollable impact.”

Porter said it had seen an increase in “close-in bookings,” which may be a result of the uncertainty, but added they’re operating on a full schedule to give travellers options. It added it has passenger protection agreements with several airlines whose passengers are experiencing travel disruptions.

Air Transat, in an email Wednesday evening, told Global News Air Canada had contacted the airline regarding “re-protection” of some travellers through the two companies’ irregular operations agreement. It said it would accommodate those passengers subject to availability.

All four airlines, however, noted capacity due to the summer schedule when asked about potential changes to flights or routes.

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