Air Canada Resumes Operations After Government Forces Arbitration

On August 17, 2025, the Canadian government intervened to end a strike by Air Canada's 10,000 flight attendants, which had stranded over 100,000 travelers around the world during the peak summer travel season. Federal Jobs Minister Patty Hajdu ordered the Canada Industrial Relations Board to extend the term of the existing collective agreement until a new one is determined by an arbitrator, forcing the workers back on the job.

The strike had begun less than 12 hours earlier, with the union accusing the government of violating the flight attendants' constitutional right to strike. However, Hajdu stated that the talks had broken down and the parties were not close to resolving key issues, necessitating government intervention to protect the economy.

Air Canada's Chief Operating Officer Mark Nasr had previously warned that it could take up to a week to fully restart operations following the shutdown. The airline had cancelled over 670 flights by Saturday afternoon, with another 96 scheduled for Sunday already suspended. Passengers whose flights were impacted were eligible for refunds or rebooking, though Air Canada warned that options were limited due to the summer travel peak.

While the government's action was welcomed by business groups, the union criticized it as rewarding Air Canada's "refusal to negotiate fairly." The dispute centered on issues of pay and unpaid work, with the union arguing that the airline's pilots, who are predominantly male, had received significant raises the previous year.