Question Period Note: COLLECTIVE BARGAINING BETWEEN AIR CANADA AND THE CANADIAN UNION OF PUBLIC EMPLOYEES

Current Status of the collective bargaining negotiations between Air Canada and the Canadian Union of Public Employees

Following the result of the vote on the tentative agreement reached between Air Canada and the Canadian Union of Public Employees, the outstanding issue of wages will now be referred to arbitration.

According to the terms of the agreement reached by the parties, there can be no strike or lockout.

The Government of Canada respects and has faith in the collective bargaining process because negotiated agreements are the best way forward.

If pressed on the issue of unpaid work:

The Government of Canada is committed to protecting workers. This includes ensuring that flight attendants, who play a critical role in keeping Canadian passengers safe, are paid fairly.

The Labour Program continues to consult with employer and employee representatives in the airline sector to better understand whether flight attendants are paid in a manner that is compliant with Part III of the Canada Labour Code.

Air Canada (hereafter the “employer”) provides domestic and international carrier service. The airline provides scheduled and charter air transportation for passengers and cargo to 222 destinations worldwide.

Air Canada and the Canadian Union of Public Employees – Airline Division (hereafter the “union”) are negotiating the renewal of their collective agreement, which expired on March 31, 2025, covering all 10,307 cabin personnel (flight attendants) employed by Air Canada. This collective agreement had been in effect for a period of 10 years.

On December 1, 2024, the union served a notice to bargain to the employer to commence negotiations. The parties held thirty days of meetings between December 2024 and May 2025, but were unable to reach an agreement.

On May 13, 2025, the union filed a notice of dispute with the Minister of Labour and four conciliation officers were appointed on May 26, 2025. More than 17 additional days of meetings with the conciliation officers took place during June and July 2025, but no agreement was reached.

The conciliation period ended on July 25, 2025, and on July 31, 2025, three mediators were appointed. Meetings with the parties took place from August 8 to 15, 2025.

On August 5, 2025, the union announced that its members had voted 99.7% in favour of a strike mandate. On August 13, 2025, the union served a strike notice to the employer, advising that strike action would begin on August 16, 2025, at 12:58 a.m. EST. On the same day, the employer served a lockout notice to the union, advising that a lockout would begin on

August 16, 2025, a 1:30 a.m. EST.

On August 11, 2025, the employer proposed to the union that the parties retain a third-party, independent arbitrator to assist in addressing outstanding issues on the collective agreement renewal through binding arbitration. The union rejected the suggestion.

On August 12, 2025, the employer sent a letter to the Minister requesting her intervention under section 107 of the Canada Labour Code (the “Code”). The union responded to this request on August 15, 2025, stating that it strongly opposed the intervention, as it believes such government action would undermine the integrity of the collective bargaining process and infringe on constitutionally protected rights.

On August 16, 2025, the Minister made a referral, pursuant to section 107 of the Code, directing the Canada Industrial Relations Board (CIRB) to: order the parties to resume and continue their operations and their duties; assist the parties in reaching a settlement of the outstanding terms of their collective agreement by imposing final binding arbitration; and extend the term of the existing collective agreement until a new collective agreement is determined by the arbitrator. On August 17, 2025, the CIRB issued the orders as directed in the ministerial direction. Despite these orders, union members continued their strike.

Negotiations continued and the parties reached a tentative agreement on August 19, 2025, thereby ending the strike and the lockout. The parties also agreed that, in the event the agreement was rejected, the outstanding issue of wages would be referred to mediation, and then to arbitration if necessary.

On September 6, 2025, the union announced that its members had voted 99.1% to reject the tentative agreement.

On September 16, 2025, both parties agreed to set aside the mediation process and refer the outstanding issue of wages directly to arbitration. According to the terms of the agreement reached between the parties, there can be no strike or lockout.

Air Canada and the Canadian Union of Public Employees (CUPE) are negotiating the renewal of their collective agreement, which expired on March 31, 2025, covering all 10,307 cabin personnel (flight attendants).

Mediators from the Federal Mediation and Conciliation Service were appointed to support the parties in reaching a new agreement.

On August 16, 2025, strike and lockout actions commenced.

That same day, the Minister of Jobs and Families exercised her authorities under section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to order the parties to resume and continue their operations and duties. The Minister also asked the CIRB to assist the parties in reaching a settlement of the outstanding terms of their collective agreement by imposing final and binding arbitration and to extend the term of their existing collective agreement until a new one is determined by an arbitrator.

On August 17, 2025, the CIRB issued the orders as directed in the ministerial direction. Despite these orders, union members continued their strike until a tentative agreement was reached on August 19, 2025.

On September 6, 2025, the union announced that members had voted 99.1% to reject the tentative agreement. As agreed by both parties, the outstanding issue of wages will now be referred to arbitration.

According to the terms of the agreement reached by the parties, there can be no strike or lockout.