Air Canada Receives 72-Hour Strike Notice from CUPE and Issues Lockout Notice in Response

Air Canada Issues 72-Hour Lockout Notice to CUPE, Plans Phased Wind Down of Operations

Air Canada has issued a statutory 72-hour lockout notice to the Canadian Union of Public Employees (CUPE), which represents 10,000 flight attendants at Air Canada and Air Canada Rouge. This action follows the union’s announcement of its intent to strike. To ensure operational certainty, the airline will begin a phased wind-down of most operations over the next three days and has requested government-directed arbitration to resolve the dispute.

Negotiations have been ongoing for eight months, with the involvement of federal conciliators. On August 11, a revised proposal was submitted, offering a 38% increase in total compensation over four years. This proposal includes provisions for ground pay, improved pensions, increased crew rest, and other adjustments. The airline emphasized that the offer requires no concessions from employees. However, CUPE has rejected both the proposal and the offer for third-party binding arbitration, and it plans to commence its strike on August 16.

The airlines’ flights operated by Jazz and PAL Airlines will continue as usual, but these carriers account for only about 20% of daily passengers. Air Canada and Air Canada Rouge transport approximately 130,000 customers daily, including 25,000 Canadians returning from abroad, who may be affected.

The airline has asked the federal government to direct binding interest arbitration under section 107 of the Canada Labour Code, citing recent interventions in other transport sector labour disputes as precedent. It argues that an orderly suspension of service reduces the risk of disruption compared to an unplanned work stoppage.

Flight cancellations will begin on August 14, with additional cancellations on August 15, and all flights will be suspended on August 16. Customers with cancelled flights will be eligible for full refunds and may have the option to be rebooked on other airlines, subject to availability during the busy summer travel period. A flexible rebooking policy has also been introduced.

The airline advises customers to confirm their flight status online or via the Air Canada app before travelling to the airport and to use self-service tools, as call centre wait times are expected to be high.