Air Canada, CUPE headed to arbitration after dispensing with mediation
The federal government is moving on to the next phase of its investigation into allegations of unpaid work and unfair labour practices in the airline sector.
Following the launch of the probe in August, the government is now conducting stakeholder outreach, inviting both employers and employees in the airline sector to participate in virtual consultations in English and French. A discussion guide has been provided to support these discussions, according to Employment and Social Development Canada (ESDC).
The government will also hold virtual roundtables with stakeholders on Sept. 23 and 24, and Oct. 2 and 3, 2025, with sessions in both official languages.
Feedback on the discussion guide can be submitted until Oct. 17, 2025.
"It's really important to understand what the root of this allegation is, how it came to be, what the remedies are, and what all parties think is the best remedy," said Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, according to a CBC report.
"This is obviously not unique to Canada. This is an industry-wide issue. But Canada can lead in terms of solving what I think sounds like a very deep irritant for workers in this industry."
In August, Hadju announced the launch of a probe into whether flight attendants are being compensated in accordance with the Canada Labour Code.
ESDC stated that a final “What We Heard Report” will be published as soon as possible after the consultation period ends. The government will then determine the next steps based on the findings of the report. The department reiterated that allegations of unpaid work are being taken seriously and that the government is committed to protecting workers and ensuring fair workplaces.
“Nobody should work for free in this country. The allegations of unpaid work in the airline industry are deeply concerning—we will get to the bottom of this,” said Hajdu. “We thank the unions and employer representatives that are taking part in this important work; together we are moving toward a fairer Canada.”
Air Canada-CUPE negotiations
Air Canada has agreed to a request by the Canadian Union of Public Employees (CUPE) to dispense with the mediation process and have the wage component proceed directly to arbitration as the employer and the union continue with contract negotiations.
“This will provide cabin crew with wage increases and their retro pay, dating back to April 2025, as soon as possible,” said the airline.
Air Canada and CUPE reached a four-year tentative agreement for its flight attendants in August. The agreement, which was not ratified by the flight attendants, was achieved without concessions from the union and included improvements to wages, pensions, and benefits, while also including a mutually agreed-upon modernization of compensation for work performed on the ground, noted the employer.
Meanwhile, on Tuesday, flight attendants from across Canada represented by CUPE staged a rally on Parliament Hill to call on Ottawa to finally act to end unpaid work in Canada’s airline industry.
“Unpaid work is a systemic issue requiring a systemic solution,” said Wesley Lesosky, president of CUPE’s Airline Division representing 20,000 flight attendants at 11 airlines in Canada. “Flight attendants should not have to negotiate—or go on strike—for a right that every other Canadian already enjoys: to be paid for their time at work. The federal government must act without delay to end this abusive practice in our industry.”
By July 2024, employers owed workers in Ontario a total of $60 million unpaid wages that remain uncollected by the provincial government since 2017, according to a previous report.
