Arbitrator Finalizes Air Canada Flight Attendant Wages, Ends Labour Dispute

An arbitrator has finalized wage rates for flight attendants at Air Canada, officially concluding a lengthy labour dispute that involved a strike, federal intervention, and a rejected tentative agreement. The binding arbitration decision sets new pay scales for more than 10,000 employees and addresses key issues like flight attendant ground pay, bringing to a close the CUPE Air Canada arbitration process that began after a brief strike last summer.

The resolution ends a period of uncertainty that began last August when over 10,000 flight attendants went on strike, causing significant travel disruptions. The Canadian federal government intervened less than 12 hours later, invoking Section 107 of the Canada Labour Code to force the parties into binding arbitration. The Canada Industrial Relations Board (CIRB), which administers the code, subsequently ordered employees back to work.

Details of the Arbitrated Agreement

According to the arbitrator's decision, the wage rates from a previously rejected tentative deal will be maintained for mainline Air Canada flight attendants. This includes a 12% salary increase this year for junior members and an 8% increase for senior members. Flight attendants at Air Canada Rouge, the airline's low-cost subsidiary, will receive a 13% increase in the first year, one percentage point higher than the initial offer.

For all flight attendants, the contract stipulates subsequent annual increases of 3% in the second year, 2.5% in the third, and 2.75% in the fourth. The new collective agreement is set to run until March 2029. The bargaining committee for the Air Canada component of the Canadian Union of Public Employees (CUPE) stated that this was not the outcome the union had fought to achieve, particularly after 99.1% of its members voted to reject the wage offer in September.

Addressing Unpaid Ground Time

A central issue in the airline union negotiations was compensation for duties performed while an aircraft is on the ground. While the wage portion was subject to arbitration, terms surrounding ground pay were previously agreed upon and considered final. The new contract makes significant changes to this practice. Flight attendants will now receive 50% of their hourly wage for 60-70 minutes of ground time, a figure that will rise incrementally to 60% in April, 65% in 2027, and 70% in 2028.

This issue has drawn scrutiny from federal regulators. A government probe into claims of unpaid work did not find evidence that airline compensation fell below the federal minimum wage but noted that pay practices for entry-level flight attendants warranted closer examination. The gains on ground pay at Air Canada are seen by labour experts as a potential precedent for future negotiations across the Canadian aviation sector, reflecting a broader trend of post-pandemic labour activism aimed at improving working conditions.

Visit flying.flights for the latest commercial aviation news and airline industry updates. From aircraft production to supply chains, commercial aviation manufacturing news is covered at flying.flights/manufacturing.