Search Travel Market Report

mainlogo
Subscribe to TMR
U.S.A.
English
Canada
English
Canada Quebec
Français
  • News
  • Packaged Travel
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Air
  • Training & Resources

Union Unhappy with Arbitration Result for Air Canada Cabin Personnel

by Bruce Parkinson  February 17, 2026
Union Unhappy with Arbitration Result for Air Canada Cabin Personnel

Air Canada flight attendants massively rejected a tentative deal. sending wage arrangements to arbitration.

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.

Air Canada resumes flights after shutdown
An arbitrator has decided the wage awards for Air Canada cabin crew.

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

  
  
Related Articles
Les titulaires d’une carte de crédit Aeroplan reçoivent 15% de rabais supplémentaire sur les échanges de prime
Air Canada Extends Dubai Suspension Until At Least March 2027
Air Canada en pourparlers pour lancer une liaison vers le Vietnam
Air Canada Wants in as New Deal Enables 1st Direct Flights Between Canada & Vietnam
Key Sponsors Announced for 2nd Annual Canadian Travel Awards
Air Canada conserve son titre de meilleur transporteur aérien en Amérique du Nord
Air Canada Named Best Airline in North America at 2026 Skytrax World Airline Awards
Air Canada Named Best Airline in North America for 2nd Consecutive Year
Air Canada’s Mark Nasr Named to Canada’s Top 40 Under 40 Award for 2026
Mark Nasr d’Air Canada nommé parmi les “40 Under 40”
Top Stories
Flair Launches First-Ever Vancouver-Guanajuato Route
Flair Launches First-Ever Vancouver-Guanajuato Route

Flair launches a non-stop route linking Vancouver and Guanajuato, establishing the first direct air service between Canada and Mexico’s Bajío region.

WestJet Begins Retiring the Aircraft Model That Built the Airline
WestJet Begins Retiring the Aircraft Model That Built the Airline

WestJet was built on the Boeing 737-700. Twenty-five years later it has begun the process of getting rid of them.

Tobago Readies for 1st Direct Flight From Canada Post-COVID
Tobago Readies for 1st Direct Flight From Canada Post-COVID

The new flight gives the island a direct link to one of its most important international visitor markets just in time for the winter travel season.

Halifax Loses Three Transatlantic Routes for 2027
Halifax Loses Three Transatlantic Routes for 2027

Both WestJet’s Halifax-Copenhagen and Halifax-Madrid routes are no longer scheduled for 2027. As well, Icelandair is dropping its Halifax-Reykjavik route.

NEXUS Interview Deadlines Shortened As More Capacity Available
NEXUS Interview Deadlines Shortened As More Capacity Available

Starting April 1, 2027, applicants must schedule their NEXUS enrolment interview within two years of receiving conditional approval.

Riding a Wave: Visit Portugal Has Busy Fall Program of Travel Trade Initiatives
Riding a Wave: Visit Portugal Has Busy Fall Program of Travel Trade Initiatives

With increased airlift, Portugal is working closely with industry partners to build demand for the winter and spring seasons.

TMR Subscription

Don’t miss out! Sign up for our free daily newsletter and get the latest Canadian travel industry news and event coverage delivered straight to your inbox. No spam — just what matters.

Subscribe to TMR

Outlooks

View All Outlooks ›

White Papers

View All White Papers ›

Destination Guides

View All Destination Guides ›
industry insider
industry-insider.jpg
https://vumbnail.com/1244890465.jpg
VIDEO: Heather Baker on Envoyage’s “Two Superpowers,” Canadian Travel Trends & What’s Next
Advertiser's Voice
VIDEO: Heather Baker on Envoyage’s “Two Superpowers,” Canadian Travel Trends & What’s Next
About Travel Market Report Mission Meet the Team Advertise Syndication Guidelines
TMR Resources Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
Editor@travelmarketreport.ca
Give Us a Call
647 255 8990
Drop Us a Note
Travel Market Report Canada Inc.
3080 Yonge St. Suite 6060 Toronto, ON M4N 3N1
© 2005 - 2026 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | Terms and Conditions
Cookie Policy Privacy Policy Manage cookie preferences