There's no word yet whether Air Canada and the union representing some 10,000 of its flight attendants have averted a possible strike or lockout that could begin as soon as Saturday.
The Air Canada component of the Canadian Union of Public Employees will be in position to strike as of 12:01 a.m. ET on Saturday. That means the required 72 hours' notice for any job action could be given at any point.
However, there is so far no indication from either side that notice of strike or a lockout has been served, or that a tentative deal that would avert a work stoppage has been reached.
Air Canada said on Tuesday afternoon it has reached an "impasse" in negotiations with the union, which on Tuesday said it declined a proposal from the airline to enter a binding arbitration process.
In a statement, the airline said in the event of a stoppage, it would notify customers whose flights are potentially cancelled and they will be eligible for a full refund, which could be obtained through its website or the Air Canada mobile app.
It said it has made arrangements with other Canadian and foreign carriers and Via Rail to provide customers alternative travel options "to the extent possible."
Earlier Tuesday, CUPE said in an update to members that the company has "decided they no longer want to negotiate." The union attached a letter that it received from Air Canada, dated Monday, in which the airline proposed going the arbitration route to secure a new contract.
That would have suspended the union's right to strike, as well as Air Canada's right to lock out union members, the letter noted.
Last week, the flight attendants voted 99.7 per cent in favour of giving their union a strike mandate, which is effective for 60 days.
"After eight months of negotiation, we have been unable to reach a tentative collective agreement despite our best efforts and those of the Federal Mediation and Conciliation Service," stated the Air Canada letter, signed by executive vice-president and chief human resources officer Arielle Meloul-Wechsler.
"Engaging in interest arbitration will let the flight attendants, CUPE, Air Canada and Air Canada Rouge move forward without further delay and uncertainty, both of which weigh on us all."
The letter pointed out that Air Canada and CUPE have successfully used arbitration in previous negotiations.
But CUPE called it a "proposal to preserve an exploitative system and strip away (members') voice."
"Everyone knows that the best deals are made at the bargaining table, not handed down by an outside third party," the union said in its message to members.
It said that, unlike with a tentative agreement reached through negotiations, members would not get a chance to vote on an arbitrator’s decision, which would be final.
The union also said arbitrators "rely on precedent and the status quo to make their determinations," which runs counter to its objectives in bargaining talks.
"Air Canada flight attendants are trying to break the status quo by ending the historic abuse of unpaid work in this industry," it said.
"Air Canada wants an arbitrator to do their dirty work for them to keep the status quo intact."
The union has said its main sticking points revolve around what it calls flight attendants' “poverty wages” and unpaid labour when planes aren't in the air.
This report by The Canadian Press was first published Aug. 13, 2025.
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