Statement from CUPE on Air Canada’s Request for Binding Arbitration

TORONTO--(BUSINESS WIRE)--The Air Canada Component of CUPE has respectfully urged Employment Minister Patty Hajdu not to intervene pursuant to section 107 of the Canada Labour Code thereby permitting collective bargaining to continue and allowing the parties to negotiate a resolution.

The integrity of the collective bargaining process depends on allowing the parties to reach a resolution through free and fair negotiations, without undue interference.

Rather than continuing to negotiate in good faith, Air Canada appears to have anticipated government intervention and has opted to suspend meaningful discussions, contrary to its legal obligation to bargain in good faith.

On August 11, 2025, the Union submitted a revised wage proposal, which included the withdrawal of its long-standing position seeking the same wage adjustment previously provided by Air Canada to its pilots. Despite this significant concession, Air Canada declined to meaningfully engage with the proposal and did not present a counter-proposal.

On August 12, 2025, the Union made additional and substantial modifications to its wage position. The Union did not receive a response to its proposals, instead, it learned for the first time, when meeting with Minister Hajdu on August 12, 2025, that it had been rejected.

On August 12, 2025, Air Canada unilaterally declared an impasse and withdrew from the bargaining table. It has not returned. On August 12, 2025, unbeknownst to the Union, the Company made an extraordinary and premature request to the Minister seeking the application of section 107 to prevent a strike or lockout.

It is clear from Air Canada’s submissions to the Minister that it had planned to withdraw from bargaining and ask the Minister to interfere with the bargaining process.

Early on August 13, 2025, given Air Canada’s refusal to bargain, the Union issued notice of its intent to commence a legal strike beginning Saturday, August 16, 2025. Within minutes, Air Canada served a lockout notice.

The Union submits that the appropriate course of action is for Air Canada to return to the table and resume good faith bargaining. Accordingly, Air Canada’s request for ministerial intervention under section 107 should be firmly rejected.

The mere prospect of ministerial intervention has had a chilling effect on Air Canada’s obligation to bargain in good faith. Air Canada’s request for intervention should be denied. Such a decision would reaffirm the principles of free collective bargaining and compel Air Canada to return to the bargaining table – where it ought to be – and engage meaningfully in negotiations, where it is likely that the Parties may be able to reach an agreement.