Carney Calls Air Canada Impasse ‘Disappointing’

Prime Minister Mark Carney speaks to reporters as he arrives on Parliament Hill in Ottawa, on Aug. 18, 2025. The Canadian Press/Patrick Doyle

Prime Minister Mark Carney says he’s disappointed that Air Canada and the union representing its flight attendants are at an impasse in their negotiations and is urging both parties to reach a deal.

“It is disappointing that those negotiations did not come to an agreement,” Carney told reporters in Ottawa on Aug. 18.

Carney, whose government has mandated binding arbitration to end a strike by flight attendants that started on Aug. 16, noted that Air Canada and the union haven’t been able to reach an agreement after eight months of negotiations.

“We are in a situation where literally hundreds of thousands of Canadians and visitors to our country are being disrupted by this action,” the prime minister said.

“I urge both parties to resolve this as quickly as possible.”

Hours after the strike began on Aug. 16, Jobs Minister Patty Hajdu referred the negotiations to the Canadian Industrial Relations Board (CIRB), saying she is invoking section 107 of the Canada Labour Code to end the strike in the interest of Canadians and the economy. The CIRB ordered the flight attendants to return to work by 2 p.m. on Aug. 17.

The Canadian Union of Public Employees (CUPE), which represents the flight attendants, accused Hajdu of caving to Air Canada’s demands, saying the airline was not engaging in good-faith negotiations as it expected the government to intervene to end the strike.

Hajdu said she exercised her authorities to “secure industrial peace and protect the interests of Canada, Canadians, and the economy,” adding that there was a need to intervene since both parties were “so far apart on a number of issues.”

Air Canada planned to resume operations on Aug. 17, but postponed its plans to Aug. 18 after the union ignored the back-to-work order and launched a legal challenge against the order. Flight cancellations have now been extended until 4 p.m. on Aug. 19 as the union has continued its strike, the airline says.

Meanwhile, the CIRB said on Aug. 18 that the continued labour action is illegal. The board ordered the union to “immediately cease all activities that declare or authorize an unlawful strike” and have its members return to work.

Despite this order, CUPE President Mark Hancock said on Aug. 18 that the work stoppage will continue. He said the union is standing up for constitutionally protected rights to collective bargaining for all Canadians, and added he is willing to go to jail to protect the right to strike if necessary.

Air Canada has estimated that approximately 500,000 travellers have been impacted as a result of the strike as of the morning of Aug. 18.

The negotiations have been centred around wages and ground pay, with flight attendants saying it’s unfair they don’t get compensated for work done between flights while the plane is grounded, while also demanding higher overall pay.

Air Canada said it has offered a 38 percent increase in total compensation over four years, including wages, pensions, health benefits, and vacation pay.

The union says that the airline’s offer translates to only a 17.2 percent wage increase over four years, and that inflation has outpaced wages for the workers.

The Conservatives and the NDP have sided with the flight attendants.

Conservative MP Kyle Seeback, who is his party’s critic for labour, says the workers shouldn’t be forced back to work, and should receive fair compensation.

“Instead of continuing to attack flight attendants by forcing them back to work, [Prime Minister Mark] Carney should work with Parliament to pass the Conservatives’ Flight Attendants Fairness Act, ensuring workers are paid for the work they do before, during and after a flight,” he said in a statement.

The NDP has criticized the government’s use of Section 107, with Interim Leader Don Davies saying it’s a “misuse” of that section.

“They should recall Parliament and democratically debate back to work legislation if they feel it’s justified,” Davies said.