Ottawa’s interference in the Air Canada strike delayed a resolution. When it stepped aside, a deal quickly followed
When governments get out of the way, collective bargaining works—and the Air Canada flight attendants proved it by reaching a deal the moment they were left to negotiate freely.
The strike by 10,000 flight attendants ended on Aug. 19 with a tentative agreement between their union, the Canadian Union of Public Employees (CUPE), and the airline.
That only happened after the Canadian Industrial Relations Board, acting under the federal government, tried to force an end to the strike by ordering the employees back to work. The CIRB can suspend or limit strikes if it believes a labour dispute threatens public safety or the economy. In this case, it attempted to use that power to override the strike—a move workers strongly opposed.
Because Air Canada is federally regulated, labour disputes fall under federal labour law, not provincial. That gives Ottawa broader powers to intervene in disputes, including through back-to-work legislation or binding arbitration.
That legal context helps explain what happened next. The government’s attempted intervention failed. But when it stepped back and let both parties negotiate freely, a deal was reached within hours.
It was a swift and fair outcome—one that likely could have happened earlier if not for the looming threat of government interference.
Employers already hold most of the power. They decide when to invest, where to expand and who to hire or fire. They often benefit from institutional credibility and public sympathy. The only meaningful power workers have is the ability to bargain collectively, and, if necessary, to strike.
The Air Canada flight attendants—more than 70 per cent of whom are women—hadn’t been able to negotiate a proper contract in over a decade. Wages had fallen behind inflation, even as they were expected to live in some of the country’s most expensive cities. Many had less than five years’ seniority and were paid near-poverty wages. They also performed unpaid ground work before and after flights.
Their frustration translated into action. They were fighting for better pay and to be compensated for all the hours they worked.
And they were united. Over 90 per cent of union members voted. Of those, 99.7 per cent backed the strike. The public supported them too.
Air Canada, however, appeared to be counting on the government to intervene—expecting Ottawa to force arbitration and deny workers a vote on their own contract.
That undermines the constitutional right to free collective bargaining and feeds growing frustration among workers as corporate profits soar while wages stagnate. Last year, Air Canada’s CEO earned $12 million while some staff struggled to make ends meet.
This kind of imbalance shows why collective bargaining rights matter. The system is meant to balance power—ensuring workers can negotiate fairly while employers continue to operate between contracts. That structure has mostly preserved labour peace in Canada.
But when government overrides that process, it invites disorder. In this case, it led to hundreds of thousands of delays for passengers, lost revenue and reputational damage, only for both sides to agree on terms they might have reached much earlier if the threat of interference hadn’t been on the table.
The outcome sets an important precedent. If major employers expect Ottawa to intervene every time a union takes job action, the right to strike becomes meaningless. And that weakens the bargaining power of workers across the country—not just in aviation.
CUPE flight attendants—and their union—deserve credit for standing up for their rights. In doing so, they rallied support across the labour movement.
The lesson is simple: when governments and corporations overreach, they risk losing control. But when workers stand together and fight for fairness, they can win.
Peggy Nash is the executive director of the Canadian Centre for Policy Alternatives.
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