Union Unhappy with Arbitration Result for Air Canada Cabin Personnel

Arbitrator Paula Knopf has issued her award in the wage rate arbitration dispute between Air Canada and its cabin crew represented by the Air Canada Component of CUPE. The union is not happy with the results.

A note to members from the CUPE bargaining committee concludes with: “This is not the outcome the Union fought to achieve.”

The issue was sent to arbitration after the federal Minister of Jobs and Families Patty Hajdu invoked section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to end the cabin crew strike and refer all outstanding matters to binding interest arbitration. 

The Union defied the back-to-work order and continued the strike which Air Canada asserted was illegal, but on August 19, 2025,  the Union and Air Canada signed Minutes of Settlement (“MOS”) containing the following terms:

• The Union would end the strike.
• Air Canada would not seek fines or damages with respect to the Union’s strike activities.
• “Agreed items” such as terms relating to unpaid work, passport fee reimbursement, etc. would form part of the 2025–2029 Collective Agreement.
• Air Canada’s wage proposal would proceed to a ratification vote and, if it was not ratified, the wage rate dispute would proceed to arbitration.

The wage proposal was overwhelmingly rejected by union members, thus proceeding to arbitration, which took place in January.

Arbitrator Knopf wrote in her arbitration award summary that the settlement guaranteed several breakthroughs and gains for Cabin Personnel, without CUPE having to make any concessions, including:

• The introduction of a “Ground and Cabin Security Premium” that would generate additional income for what CUPE had been calling “unpaid work.”
• Increases to Canada/US meal allowances.
• Improvements for Rouge Cabin Personnel who chose to transfer or “flow through” to Mainline, including the removal of language requirements thereby allowing quicker movement up to the Mainline wage grid.
• Increased vacation entitlements.
• Benefit improvements for Mainline cabin personnel.
• The introduction of a minimum entitlement to rest while on layover based on when cabin personnel receive their hotel room key rather than based on flight-check out or other factors. 
• Pension enhancements.

The Arbitrator also found that the wage rates offered by Air Canada were “generally within the normative range for this sector and had to be assessed in light of the other substantial improvements that had been secured.” 

The Arbitrator concluded that the Minutes of Settlement presented a strong foundation for the determining the applicable wage rates, with one exception. The wage rates offered for Rouge were not consistent with the Parties’ pattern of bargaining and were increased to help ensure they did not fall below the rates of other comparable Canadian airlines. 

The Arbitrator determined that Cabin Personnel’s wage rates should be increased by the following percentages: 

• April 1, 2025 – For Mainline 12.0%, steps 1 to 9; 8.0% for all other steps
  • For Rouge 13.0%, all steps 
• April 1, 2026 – For Rouge and Mainline 3.0%, all steps 
• April 1, 2027 – For Rouge and Mainline 2.5%, all steps 
• April 1, 2028 – For Rouge and Mainline 2.75%, all steps 

The full award details can be found here