Skipping the U.S. and taking a vacation to East Coast this year? It will cost you.
Beitman Brener, a lawyer in Kingston, Ont., spent about six months planning the trip, looking at various options to stay in Prince Edward Island, Nova Scotia and New Brunswick.
'We are young, we don't have all the money in the world, we have a mortgage. So we went on this trip and we thought, 'oh, this will be affordable compared to something like Japan' . … We were going to cook our own food,' she said in a recent interview.
They rented a recreational vehicle in Montreal for about $6,000, and between campground parking fees, gasoline, groceries, park passes, a round of golf, and a couple of dinners out, Beitman Brener said the total added up to $15,000.
'It was the most incredible trip. We loved it. It was worth it. It was incredible. The East Coast is so extraordinary,' she said. 'But it was $15,000 and we talked to our friend — they went to Japan for three weeks for the same price, with flights. And I said to my husband, 'well, we could have gone to Japan for the same price.''
This year, as a trade war grinds on with the United States, Canadians who decide to vacation within their country are realizing their patriotism comes with a hefty price tag — and some are choosing to scale back their plans.
For Alick Tsui, a St. John's, N.L., resident, a recent five-day, two-person trip to Port Rexton, N.L., cost him about $3,000. He is avoiding spending his dollars in the United States because of U.S. President Donald Trump's trade war and comments of annexing Canada.
But high prices are forcing him to cut costs for future trips in Canada. 'Before I would stay for four nights, now I may cut it down to three nights. But that won't change my plan to travel.'
Tsui said he and his wife try to save money with 'economical' lunches from gas stations. 'But nighttime, we try to find whatever we can to have a good meal. Not expensive, but a good meal,' he said. The couple went to Vietnam and Thailand earlier this year for about 10 days; that trip cost about one-third the price that he usually pays for a week's vacation in Canada.
Beitman Brener, meanwhile, says she wanted to take a mother-daughter vacation this month after the lawyer had some unexpected time off. The duo sought to travel within Canada on a budget of $3,000 for four nights and five days. They too are avoiding travelling to the United States.
She looked into several locations, including Quebec City and Manitoulin Island in Ontario, but — even with sharing a hotel or Airbnb room — their accommodation costs would have been about $3,000. Along with food and gas, the total would have been about $6,000, she said.
They couldn't justify the cost so they chose to spend two nights at a boutique hotel in their hometown. The fact each vacation has to be planned down to every meal because of high costs has removed some of the joy of taking a spontaneous holiday in Canada, she said.
A scan of individual round trip flights from Toronto to cities on the East Coast for the week of Aug. 18 -23 showed prices to Halifax ranging from around $700 for Flair Airlines to nearly $1,700 for WestJet; about $1,200 via Air Canada to $2,500 via Air Transat to St. John's; and between $1,500 and $3,000 on Air Canada to Charlottetown.
A vehicle rental for five days the week of Aug. 18 -23 in Halifax, St. John's, and Charlottetown ranged from an average of $1,500 for an SUV to $1,000 for a sedan. For the week, hotel rooms in Halifax, St. John's and Prince Edward Island ranged from around $200 a night to $500.
Richard Powers, associate professor at University of Toronto's Joseph L. Rotman School of Management, said two main reasons can help explain why travel within Canada is so expensive — lack of competition among airline services and fallout from COVID-19.
Airlines haven't reinstated some of routes they cut down at the height of the pandemic, he said. How long the fallout from COVID-19 will last is anybody's guess, Powers said. 'That's the million-dollar question.'
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When it comes to accommodation, he said the high prices can be blamed on minimal supply. 'I'm just booking Vancouver for the fall, and I'm having trouble finding a place for under $500 a night,' he said. 'That's a lot.'
Restaurant bills in Canada add up — when compared with those in Europe — because of the tipping culture that adds 15 to 20 per cent for each meal, he said.
With the push to support Canadian tourism, Powers said, people are willing to pay 'a bit of a premium.'
'How much premium is the question? And it's almost getting out of control.'
This report by The Canadian Press was first published Aug. 16, 2025.
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The Province
2 hours ago
- The Province
Safe as houses? How Canada's ailing housing market could spell trouble for the whole economy
Real estate is not only a major source of wealth for Canadians, it's also one of the country's top economic drivers. Jordan Gowling looks at how one of the worst housing markets in decades could drag on jobs, government revenues and the stability of the financial system Homes under construction in Bradford, Ontario. Photo by Tyler Anderson/National Post Holly Calderwood has worked in the Vancouver real estate industry for two decades, and there's only been a handful of times when she has seen the housing market this bad. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors 'I think the last time I saw this was in 2008-2009 during the financial crisis,' she said. 'And in 2020 during COVID-19.' Calderwood has built a career specializing in selling luxury real estate from condos to waterfront properties, and she has recently noticed both a decline in sales and prices, as well as a rise in foreclosures. 'It really picked up last year, but this year, too,' she said. 'A lot of foreclosures and then you just see the price dropping. Sometimes people are losing a couple of million.' Calderwood attributes the causes for that trend to homeowners renewing at higher interest rates, a foreign buyer ban and a trade war with the United States that has put a damper on investment sentiment and demand. Economists and industry insiders say some markets have entered a buyer's market for the first time in years, with cities such as Toronto, Vancouver and even Calgary recording significant drops in sales activity and posting record highs in inventory. That could be a sign of price bubbles bursting, which is welcome news for would-be buyers, but could also spell trouble for the Canadian economy, which has relied on housing in recent years as an important economic driver, and it could lead to a drag on jobs, government revenues and the stability of the financial system. This advertisement has not loaded yet, but your article continues below. The housing market recently peaked in mid-2022, before it started declining as the Bank of Canada began raising interest rates to deal with post-pandemic inflation. Earlier this year, the industry was hoping the market would begin a slow recovery after the central bank began delivering rate relief in 2024. Data from June and July seem to suggest a pickup in activity, but prices and sales are down compared to last year. Robert Hogue, assistant chief economist at Royal Bank of Canada, projects home resales will decline 3.5 per cent in Canada to 467,100 units in 2025, with the drop largely concentrated in Ontario and British Columbia. Trade uncertainty and general worries about the Canadian economy have been blamed for the slowdown, but some markets have also become unaffordable for many buyers. 'We have had a structural shift in interest rates,' Charles St-Arnaud, chief economist at Alberta Central, said. 'That changed the affordability equation quite significantly for many markets.' He said mortgage rates are 150 basis points higher than they were in the decade before the pandemic and that has left a lot of would-be buyers not being able to afford what they thought they could afford. This advertisement has not loaded yet, but your article continues below. 'That's why we've been seeing prices going nowhere; no one can afford to overbid for a house in aggregate,' he said. Gregor Robertson, seen here in 2018, is now Minister of Housing and Infrastructure. While Mayor of Vancouver he strove to end homelessness. Photo by Jason Payne/Postmedia Some politicians like to talk about lowering housing market prices as a social good, but housing and real estate investments remain a key economic driver for Canada and investors need to know they'll get a return on their money. In May, Canada's newly appointed Housing Minister Gregor Robertson said the quiet part out loud when he was asked whether house prices should go down. 'No, I think that we need to deliver more supply, make sure the market is stable,' he said during a scrum on Parliament Hill. 'It's a huge part of our economy.' Last year alone, the housing sector contributed $143.4 billion to the economy and supported 1.2 million jobs. Someone buying a home often translates into spin-off consumption in other areas of the economy, such as household appliances, renovation services and materials. 'You've often heard the saying in the U.S. that when the housing market is doing well, the general economy is doing well,' St-Arnaud said. 'Strong housing starts, strong building construction, have a lot of spillover to the rest of the economy.' Residential investment contributed 10 per cent to Canada's gross domestic product (GDP) in 2021 during the pandemic housing boom and 7.5 per cent in 2023. The total value of housing assets grew to $4.2 trillion last year, representing 25 per cent of national wealth. This advertisement has not loaded yet, but your article continues below. The total residential dollar value of all homes sold in Canada in June was $33.1 billion, according to the Canadian Real Estate Association, compared to $25.1 billion in June 2019, which represents a 24 per cent increase in six years. This has been helped by an increase in the average home price, which climbed to $691,634 in June from $505,500 in June 2019. Mike Moffatt, an economist and founding director of the Missing Middle Initiative at the University of Ottawa, said governments are trying to achieve two things at once: restore affordability while also maintaining an environment that encourages confidence in the market and developers to keep building. 'The governments are trying to do two things that are, on the face of it, inherently contradictory,' he said. 'We do need prices to fall. But we've seen over the last three years what happens when prices continue falling. It basically just breaks the economics for builders by eliminating the incentive to build. That creates a challenging situation where we want low prices, but we also want to create the conditions for builders to build more.' Moffatt said all levels of government benefit from housing development, often through development charges, HST/GST and other fees. This advertisement has not loaded yet, but your article continues below. Mike Moffatt, of the Missing Middle Initiative, said governments are trying to do two things that are, on the face of it, inherently contradictory — lower housing prices while encouraging building. Photo by ERROL MCGIHON/ Postmedia But cracks are starting to show in this industry. The condo markets in Ontario and British Columbia have experienced significant losses in pricing value, with signs of financial distress in the sector. What used to be an attractive area for investors to park their money is no longer the case. Condo apartment sales have dropped by 75 per cent in the Greater Toronto Area and 37 per cent in Vancouver since the pandemic peak in 2022, according to Canada Mortgage and Housing Corp. (CMHC). 'The story of the dog-crate condominiums is well understood here in Toronto and in downtown Vancouver,' Ron Butler, a mortgage broker and host of the Angry Mortgage Podcast, said. He said buyers who bought at preposterous prices five years ago, particularly in the pre-construction condo market, will not be able to see a return on their investment. Even worse, a number of condo projects in Canada's two largest cities have entered receivership or been cancelled over the last two years. One reason for the industry's decline is that Canada's population growth slowed to a crawl at the beginning of this year after several years of record-breaking growth in immigration. Some economists credited the previous surge in newcomers for masking the underlying weaknesses in the economy coming out of the pandemic as well as for keeping housing demand high in urban centres. This advertisement has not loaded yet, but your article continues below. Butler said a combination of immigration curbs introduced last fall by the federal government and an increased number of for-purpose rentals entering the market are now the biggest contributors to a decline in rental prices. 'You literally couldn't imagine a worse set of circumstances (for these investors),' he said. Condo apartment sales have dropped by 75 per cent in the Greater Toronto Area. Photo by Cole Burston/Bloomberg Condo prices in Toronto's surrounding suburbs are recording even more significant drops than in the city itself, according to a recent report by Moody Analytics. For example, prices in Halton Hills have fallen by as much as 50 per cent from their peak. Prices are dropping elsewhere, too. The average national price of a one-bedroom rental unit in Canada decreased 3.6 per cent year over year to $1,857 in May 2025, according to the latest National Rent Report by and Urbanation Inc. 'Odds are that rent is probably going to continue falling over the near term, so I wouldn't expect investors to make their way back anytime soon,' Hogue said. He said the 10 per cent decline from the peak prices in the Toronto area is significant, but it has not completely reversed the price run-up experienced during the pandemic. 'A 10 per cent price decline historically would have been very significant and a big correction,' he said. 'But after the period we have gone through, it's only reversing a small fraction of the price increase we saw during the pandemic.' This advertisement has not loaded yet, but your article continues below. Investor speculation in the real estate industry has often been a point of criticism from housing advocates. Butler said today's condo market debacle is what happens when you build a product solely around the priorities of investors instead of homeowners since it can lead to an oversupply of a product no one wants or can afford. 'The model of building high-rise condos is that you have to sell 75 per cent of the building on a presale basis, with people who will give you 20 per cent down,' he said. 'First of all, a lot of first-time homebuyers don't have the 20 per cent or need to come by it slowly, and, secondly, most of the 75 per cent of presales were comprised of investors.' Investor participation in the real estate market has also been criticized for turning housing into an asset and for taking capital away from other productive parts of the economy. Canada's lagging business investment and productivity are longstanding issues. But many regular homeowners often use their houses as a funding source for retirement or it may be the only major asset they own. 'We can think about the boomers who are sitting on big appreciation in their house values, but we can also think of recent buyers who probably overstretched themselves to get on the market,' St-Arnaud said. 'How do we deal with that if in 25 years they have zero appreciation on their main asset and they can't save for anything else?' This advertisement has not loaded yet, but your article continues below. While this price adjustment is happening in the condo market, it is also happening in the house market in certain regions in Southern Ontario and British Columbia. But not all regions are equal, since housing markets in the Prairies and Quebec are showing some resilience. 'The Quebec market seems to be on a sustained gradual upward movement,' Butler said. 'It's probably a reflection of the fact that it's just not badly priced.' But once fast-growing markets such as Calgary are also facing more buyer-friendly conditions for the first time in years, though conditions are not as bad as they are for sellers in Vancouver and Toronto. Justin Warthe, a realtor and real estate investor in Calgary, said the city's benchmark prices rose above $700,000 during the 2022-2023 peak from the mid-$500,000 range in 2020. The market has cooled since mid-2023, when interest rates rose, and the market has returned to having more than three months of inventory. 'It's definitely more of a buyer's market right now,' he said. Warthe said he has to sit some clients down who think their houses will sell overnight and tell them that's not the reality anymore. Still, despite this softening in some markets, St-Arnaud said Canada's housing remains the most expensive in the G7. This advertisement has not loaded yet, but your article continues below. 'House prices are still 26 per cent above where they were pre-COVID,' he said. To get into the market, Canadians have heavily leveraged themselves, with residential mortgage debt reaching $2.3 trillion in February this year, compared to $1.6 trillion in 2019. Nearly half of all lending by Canadian banks is for residential mortgages. The increase in mortgages has led to an increase in household debt, though Canada's current debt-to-disposable-income ratio at 173 per cent is a slight decline from the 179 per cent reported in 2024. 'It's one of the highest in the G20,' St-Arnaud said. 'How much more debt do we want our households to take? How much more vulnerability?' The worst-case scenario for mortgage renewals if a longstanding global trade war leads to higher unemployment and depleted house prices was laid out by the Bank of Canada in its financial stability report in May. 'Results suggest that the share of mortgages in arrears by at least 90 days could rise to a level comparable with or higher than levels reached in the 2008-09 global financial crisis,' the central bank said. This is, of course, the most severe scenario policymakers worked out and does not represent a likely eventuality. This advertisement has not loaded yet, but your article continues below. About 60 per cent of mortgages in Canada will renew in 2025 or 2026, with 60 per cent of those mortgage holders expected to see an increase in their payments. That said, many of those mortgage holders are expected to be able to handle the higher payments. But, as many economists have noted, the mortgage renewal risk will only be contained if the labour market holds. The unemployment rate held steady at 6.9 per cent in July, but Statistics Canada said net employment has only increased by 27,000 since the beginning of the year. ' A chief risk officer will tell you the three most important things about mortgage default, it's unemployment, unemployment and unemployment,' said Butler. For now, the weakness has been driven by slow hiring, not layoffs, and recent GDP data suggests economic growth has merely flatlined in the second quarter, so the country has not entered a contraction. 'As long as there are no job losses, as long as people still have an income, we'll be OK,' St-Arnaud said. 'If there is a negative shock, if there is a recession and we start to see relatively big layoffs, I would be really concerned for the housing market and the ramifications to the broader economy.' But the unemployment rate is rising in many places. For example, the jobless rate hit 7.9 per cent in Ontario in July and increased to 5.9 per cent in British Columbia. The construction industry led the way, with employment down 22,000 positions in July after five consecutive months of little change in the sector, according to Statistics Canada's latest release. This advertisement has not loaded yet, but your article continues below. The stalling economy seems to be affecting homebuilders. CMHC forecasts that housing starts will come in at 237,800 in 2025, down from 245,367 in 2024. The Crown corporation also forecasts 227,734 housing starts next year and 220,016 in 2027. Those figures are all well below the 430,000 to 480,000 new homes per year it said are needed to restore affordability to 2019 levels. 'We are seeing the most expensive markets experiencing a price decline,' Moffatt said. 'And because of it, new home sales have basically evaporated in those two markets.' Calderwood said developers are dealing with tariff-related cost increases and the new-build market has considerably slowed. 'I've had builders contact me and say it's the slowest they have ever seen it,' she said. Moffatt said this slowdown will only exacerbate the supply issue. It may be hard to imagine now, but that lack of supply could fuel another bubble in pricing by the end of the decade. 'If we go through a period where nothing gets built and then the economy improves, we're not going to have a lot of inventory once people are ready to buy again,' he said. Butler said the supply of homes that people want to buy will remain constrained for the foreseeable future. This advertisement has not loaded yet, but your article continues below. 'The undersupply is in first-time, low-rise homes for people to buy, whether they're single-family, townhouses or semis,' he said. 'In that particular area, in Ontario and British Columbia, building of that product collapsed 16 months ago.' The CMHC expects the average house price to drop by two per cent this year, with a slow recovery starting in 2026 as trade tensions ease and economic conditions improve. Calderwood said markets can quickly change, but she remains pessimistic that things will improve. 'A lot of realtors say they can predict the market, but we're not psychics,' she said. 'As long as Trump is in power and with that all the tariffs and chaos, I don't see it trending upward.' • Email: jgowling@
Cision Canada
2 hours ago
- Cision Canada
Canada Invests in Firefighting Training Français
OTTAWA, ON, Aug. 18, 2025 /CNW/ - Wildfire season is in full effect across much of Canada, and the Government of Canada is committed to supporting Canadians and ensuring our wildfire resilience, prevention, mitigation and recovery are best-in-call by strengthening our fire response capacity. Today, Corey Hogan, Parliamentary Secretary to the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced an investment of $540,300 for two projects through the Government of Canada's Fighting and Managing Wildfires in a Changing Climate Program (FMWCC) – Training Fund. The funding includes: $335,000 to Yorkton Tribal Council in Yorkton, Saskatchewan, to support the training of 35 community members in wildland fire management, integrating traditional knowledge and cultural burning practices to address wildfire risk reduction and mitigation. $204,800 to the Rural Municipality of Piney, Manitoba, to support the training of up to 60 individuals from the Rural Municipality of Piney and Buffalo Point First Nation in basic wildland firefighting training and to strengthen local capacity for wildfire response. Through this investment, community members in Manitoba and Saskatchewan — two provinces that have faced severe wildfire conditions this year — will receive wildland firefighting training to enhance their communities' capacity to prepare and respond to wildfires. These investments will also equip people with the necessary skills and opportunities to pursue employment in wildland firefighting. The addition of these 95 trainees has us on track to train over 2,800 wildland firefighters in Canada, greatly surpassing our original target of training over 1,000 community members. Parliamentary Secretary Hogan also delivered the latest national wildfire forecast. Looking ahead, Environment and Climate Change Canada's weather forecasts point to above-average temperatures across much of Canada through August into September, with dry conditions continuing in the coming weeks, particularly in the west and north. Based on these weather forecasts, Natural Resources Canada's modelling predicts elevated wildfire danger for August across British Columbia, Yukon, the Northwest Territories and the Prairie provinces to Ontario, as well as parts of Atlantic Canada. In September, above normal activity is expected to continue across the west. As Canadians continue to face the impacts of wildfires, which are becoming more frequent and more intense, the Government of Canada remains committed to strengthening wildfire resilience, supporting those on the front lines and equipping communities to stay safe. Quotes "Wildfires pose a serious threat to the safety, health and economic well-being of communities across Canada. Today's announcement reflects our government's continued commitment to train Canadians to fight fire in their communities. This investment helps protect Canadian families, homes and the environment — now and in the future." The Honourable Tim Hodgson Minister of Energy and Natural Resources "As wildfires continue to threaten communities across the country, we're focused on making sure people have the support they need to stay safe. That means investing in firefighter training and helping volunteers build the skills to respond quickly and effectively. It's one part of our plan to build stronger, more-resilient communities across Canada." The Honourable Eleanor Olszewski Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada "Firefighters across Canada are showing extraordinary courage as they work to protect lives, homes, businesses and communities from devastating wildfires. Their bravery is saving lives and supporting impacted communities across the country. These fires are a direct and growing consequence of climate change — becoming more frequent, more intense and more destructive every year. That's why strengthening local firefighting capacity is essential to protecting the places we call home. Projects like this are critical as we confront the escalating threat of climate change together." The Honourable Julie Dabrusin Minister of Environment and Climate Change "Yorkton Tribal Council's participation in this training initiative marks an important step forward in wildfire planning, response and recovery. First Nation communities are among the most vulnerable to wildfires, especially as the threat of climate change grows stronger. First Nations are the only people who, with the combination of their traditional knowledge and access to specialized wildland firefighting training, will be able to secure and promote resilient communities across their territories." The Honourable Mandy Gull-Masty Minister of Indigenous Services "Canadians are currently on the front lines protecting their communities and neighbours from wildfires across the country. Through today's announcement, we're strengthening local firefighting capacity by investing in the training of new volunteers and community members. By investing in and delivering firefighting training, more people will be equipped to protect lives and respond to the growing threat of wildfires." Corey Hogan Parliamentary Secretary to the Minister of Energy and Natural Resources "The Rural Municipality of Piney thanks Natural Resources Canada for its generous support, which will greatly enhance our firefighting capabilities and empower our volunteer firefighters through vital training. This funding arrives at a critical time, as our region and province face increasing wildfire risks driven by a changing climate and more-frequent forest fires. In partnership with Buffalo Point First Nation, we are building a stronger, safer and more-resilient community prepared to meet these growing challenges." Martin Van Osch Chief Administrative Officer, the Rural Municipality of Piney, Manitoba "As the Emergency Management Coordinator for Yorkton Tribal Council, I would like to express our extreme gratitude to Natural Resources Canada for the funding to move ahead with the project protecting our lands, especially now during one of the worst fire seasons in Saskatchewan. This funding will allow us to bring back our Indigenous cultures to preserve the landscapes and to mitigate wildfire risks and their impact within our communities." Emergency Management Coordinator, Yorkton Tribal Council Quick Facts Today's announcement is part of the federal government's FMWCC Training Fund, which is a $28-million investment to train more than 1,000 new, community-based wildland firefighters by 2028, focusing on Indigenous communities, to increase local fire management capacities and capabilities across Canada. The FMWCC Training Fund included a two-year pilot phase from 2022–2024 that supported 10 training projects valued at $8.2 million and helped inform the design and launch of the full Training Fund in 2024, which offered over $16 million to new applicants. The pilot supported the training of 294 firefighters and 116 fire guardians. The International Association of Fire Fighters Responding to the Interface program also upskilled 323 existing municipal structural firefighters. The FMWCC Equipment Fund was also launched in 2022 to support provinces and territories to purchase specialized wildfire firefighting equipment including personal protective equipment, vehicles, mobile units, hoses, pumps and enhanced communications equipment, many of which were used to combat wildfires last season. Through the FMWCC Equipment Fund, 12 agreements were signed with eligible jurisdictions, representing a total funding commitment of $254.3 million over five years. Visit for a complete list of links to various federal supports for individuals impacted by wildfires. Associated Links Follow Natural Resources Canada on LinkedIn.
3 hours ago
Federal labour board deems Air Canada flight attendants' strike 'unlawful'
The independent tribunal that administers Canada's labour laws has deemed the strike by Air Canada's some 10,000 flight attendants illegal and is ordering workers back to the skies. In a decision released Monday morning, the Canada Industrial Relations Board (CIRB) said the defiance of a back-to-work order on Sunday by the Canadian Union of Public Employees (CUPE) is unlawful. The order calls on the union to 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 by noon ET. The directive, written by CIRB vice-chairperson Jennifer Webster, also calls on the flight attendants themselves to resume their duties immediately. The decision comes after a hearing on Sunday following a frazzled weekend for travellers. Flight attendants walked off the job early Saturday morning, leading to hundreds of flight being grounded. Less than 12 hours later after the strike and lockout took effect, Ottawa intervened. Federal Jobs Minister Patty Hajdu invoked a contentious section (new window) of the Canada Labour Code, asking the CIRB to send the two sides to binding arbitration and to order the airline and its flight attendants back to work in the meantime to maintain or secure industrial peace. Air Canada says it hopes service returns ASAP Air Canada announced early Sunday that it planned to resume flights in the evening, but just hours later, the union representing more than 10,000 flight attendants said in a statement that its members would remain on strike, defying the back-to-work order handed down by the CIRB. CUPE has accused the Liberal government of rewarding Air Canada's refusal to negotiate fairly by giving them exactly what they wanted. WATCH | PM on Air Canada flight attendants' strike: In a statement following the CIRB directive, Air Canada said it estimates 500,000 customers' flights have been cancelled as a result. Air Canada regrets this impact on its customers and is fully committed to returning to service as soon as possible, the airline said. On Monday, Prime Minister Mark Carney said it's important that flight attendants are compensated equitably at all times and called for quick resolution. It was the judgment of both the union and the company that they were at an impasse. That's not my judgment, that's their judgment, Carney said. So … we are in a situation where literally hundreds of thousands of Canadians and visitors to our countries are being disrupted by this action. He suggested Hajdu will have more to say later in the day. Air Canada and CUPE have been negotiating a new contract for flight attendants after the previous 10-year contract expired in March. CUPE says that wages, work rules and unpaid hours are the big issues in contention. According to CUPE, many duties performed by flight attendants prior to boarding and after deplaning, including performing required safety checks and assisting passengers, go unpaid under the current pay structure. Catharine Tunney (new window) · CBC News · Reporter Catharine Tunney is a reporter with CBC's Parliament Hill bureau, where she covers national security and the RCMP. She worked previously for CBC in Nova Scotia. You can reach her at With files from Racy Rafique
