TORONTO — It was a whirlwind weekend for travellers and the travel industry as the ongoing labour dispute between Air Canada and its flight attendants continues, despite a back-to-work order.

After CUPE announced that more than 10,000 Air Canada and Air Canada Rouge flight attendants walked off the job just before 1 a.m. ET on Saturday, Aug. 16, Air Canada responded with a lockout that took effect at 1:30 a.m. ET., resulting in the suspension of all flights.

Less than 12 hours later, the federal Liberal government intervened, directing the Canada Industrial Relations Board (CIRB) to order Air Canada and CUPE to resume operations and resolve the dispute through binding arbitration. Patty Hajdu, Minister of Jobs and Families and Minister, said that she exercised her authorities under section 107 of the Canada Labour Code because “it is critical to maintaining and securing industrial peace, protecting Canadians and promotion conditions to resolve the dispute.” The decision, she added, “will help make sure that hundreds of thousands of Canadians and visitors to our country are not impacted because of cancelled flights,” and that “the shipments of critical goods such as pharmaceuticals and organ tissue – over 40% of which are moved by Air Canada – should continue to reach their destinations.”

Following the binding arbitration, Air Canada announced that flights would resume on Aug. 17, but that some flights would still need to be cancelled over the next 7-10 days until its schedule completely stabilizes.

But a few hours later, also on Aug. 17, CUPE declared that its workers will remain on strike despite the back-to-work order and invited Air Canada back to the table to negotiate a deal. The union filed a challenge in Federal Court on Sunday against the order by the CIRB.

“Our members are not going back to work,” CUPE national president Mark Hancock said outside Toronto’s Pearson Airport while ripping up a copy of the back-to-work order. “We are saying no.”

In response, Air Canada said it has suspended its plan to resume limited flying on Aug. 17, and that it will instead resume flights this evening, on Aug. 18. However, a notice on its booking page said all Air Canada and Air Canada Rouge flights were cancelled until further notice.

Air Canada has said passengers whose flights are cancelled will be offered a full refund or the opportunity to change their travel plans without a fee. However, it said that under Canada’s airline passenger protection regulations, customers are not eligible for compensation for expenses incurred during travel delays deemed outside the airline’s control.

WHERE DO THINGS STAND NOW?

This morning, on Aug. 18, Air Canada said the CIRB has declared that the ongoing strike activity by its 10,000 flight attendants is unlawful and has ordered CUPE’s leadership to direct its members to return to work.

In the directive, CIRB vice-chairperson Jennifer Webster said: “The members of the union’s bargaining unit are directed to resume the performance of their duties immediately and to refrain from engaging in unlawful strike activities.”

In its ruling, CIRB declared:

• The union and its officers are ordered to immediately cease all activities that declare or authorize an unlawful strike of its members and to direct the members of the bargaining unit to resume the performance of their duties;
• The members of the union’s bargaining unit are directed to resume the performance of their duties immediately and to refrain from engaging in unlawful strike activities;
• The union and its officers shall provide written public notice, either through its website or other means, to all members by 12:00 pm EDT on August 18, 2025, that it has revoked its declaration or authorization of strike activities and that all members are required to resume the performance of their duties.

Due to “CUPE leadership’s unlawful strike activities,” says the airline, it is now estimated that 500,000 customers’ flights have been cancelled.

Flight attendants are expected to remain on the picket lines today.

Air Canada also announced on Aug. 18 that it is suspending its guidance for third quarter and full-year 2025 operating results due to the labour disruption’s effects and resulting suspension of all flights.

Prime Minister Mark Carney says he’s disappointed that that two sides weren’t able to reach a deal after eight months of negotiations. He is urging Air Canada and the union to resolve the situation.

LABOUR UNIONS OFFER SUPPORT

After news of the federal government’s back-to-work order broke, several unions spoke up to show their support for Air Canada and Air Canada Rouge’s flight attendants.

Unifor, Canada’s largest union in the private sector that represents 320,000 workers in every major area of the economy, said on Aug. 16 that is “strongly condemns” the government’s imposition of binding arbitration and that it stands “shoulder-to-shoulder” with CUPE flight attendants. It had issued a solidarity letter earlier in the week, pledging ongoing support.

“This move by the federal government sends a clear message to federally regulated employers: Don’t bother bargaining fairly with workers because the government will step in to strip away your right to strike,” said Unifor National President Lana Payne. “Our message is equally clear – Unifor will always defend workers’ right to strike and any government or company that tries to rip that away is in for one hell of a fight.”

A statement from the Canadian Labour Congress said late Sunday evening that the “heads of Canada’s unions” met in an emergency session to stand behind Air Canada’s flight attendants.

The group called Hajdu’s intervention an “unconstitutional attack on workers’ rights” and said Canada’s labour groups were unanimously calling on the federal government to withdraw its intervention.

The statement also said labour unions are ready to “co-ordinate a fight back campaign” and promote and co-ordinate financial contributions to assist with legal and other costs related to flight attendants’ decision to defy Hajdu’s order.

“The labour movement is united and standing firm, and we will not allow these Charter-protected rights to be trampled upon,” the statement read.

With files from The Canadian Press