
Air Canada cabin crew strike: Everything you need to know about the total shutdown
Members of the Canadian Union of Public Employees working for the airline are walking out in a long and bitter pay dispute. The shutdown will affect passengers with both Air Canada and its low-cost subsidiary, Rouge.
Air Canada says it has offered 'a 38 per cent total compensation increase over four years'. But the union says: 'With respect to Air Canada's latest offer: it is below inflation, below market value, below minimum wage.'
The union says it 'received an unprecedented 99.7 per cent strike mandate from its membership.'
When Air Canada received the strike notification, it issued a 'lockout notice' – which the Canadian Industrial Relations Board (CIRB) defines as: 'The closing of a place of business or a suspension of work by an employer.'
Michael Rousseau, the airline's president and chief executive, said: 'Our only responsible course of action is to provide certainty by implementing an orderly suspension of Air Canada's and Air Canada Rouge's operations through a lockout.
'Unplanned or uncontrolled shutdowns, such as we are now at risk of through a strike, can create chaos for travellers that is far, far worse.'
Cancellations began on Wednesday 13 August, with more planned for Thursday. All Air Canada flights are expected to cease by Friday.
These are the key questions and answers for passengers.
How will the strike affect passengers?
Air Canada flies about 120,000 passengers per day in August – more than 3,000 of them to or from the UK. The airline's main British airport is London Heathrow, with additional flights to and from Gatwick, Manchester and Edinburgh.
The carrier says: 'Customers will be notified of alternative travel options that are identified for them. However, given other carriers are already very full due to the summer travel peak, securing such capacity will take time and, in many cases, will not be immediately possible.'
Air Canada says it 'has made arrangements with other Canadian and foreign carriers to provide customers alternative travel options to the extent possible'.
What are my rights if my flight is cancelled?
If your flight was due to start in the UK or EU, and is cancelled, Air Canada must find an alternative way to get you to your destination as close to the original timings as possible.
The obvious transatlantic replacement would be on British Airways, Air Transat or WestJet between the UK and Canada, if seats are available.
Air Canada is also likely to rebook passengers with its Star Alliance partner, United. This might involve flying from the UK to Canada via the US – which would require you to go through the onerous business of getting an Esta permit and clearing the US frontier for the hour or two you will be spending there between flights.
While passengers are waiting to be flown where they need to be, they can expect to be provided with hotel accommodation and meals if necessary.
If your journey begins in Canada, the Air Passenger Protection Regulations (APPR) apply. For cancellations that are the airline's responsibility, travellers would be entitled to compensation as well as hotels and meals as necessary.
But unlike European air passengers' rights rules, the Canadian regulations excuse airlines a duty of care if the cause of disruption is outside its control. According to the APPR, 'a labour disruption within the carrier' is regarded as beyond an airline's control. So there is no entitlement to care.
Could travel insurance help?
In some circumstances, notably for additional expenses incurred as a result of the strike that cannot be covered by anyone else, you can claim on travel insurance. But you would be expected to approach the airline first before claiming for out-of-pocket costs.
For flights from the UK, the airline is responsible for extra costs; from Canada, it is not.
Will I get compensation?
Possibly for a flight leaving from a UK airport. Under British air passengers' rights rules, there is no consensus that industrial action entitles travellers whose flights are cancelled to claim cash compensation.
Canada's APPR holds that strikes are outside Air Canada's control and no compensation is payable.
How long will this go on?
Hopefully days rather than weeks or months. Air Canada is set to lose tens of millions of dollars each day until the strike ends. But the two sides are a long way apart.
The Canadian Union of Public Employees says: 'We have always been available to negotiate. The union was available to continue discussions while it sought a strike mandate – the company never reached out.'
The aim of Air Canada's pre-emptive lockout, according to CIRB, is to pressure the union into agreeing to terms and conditions of employment and sign a collective bargaining agreement. The airline hopes that the shutdown will persuade the union to agree to binding arbitration.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Times
9 minutes ago
- Times
British horse racing to go on strike over betting tax rise
British racing will take the unprecedented step of going on strike next month, cancelling all meets for a day in protest at the proposed rise to betting tax. Four events due to be staged on September 10 at Carlisle, Uttoxeter in Staffordshire, and Kempton and Lingfield Park in Surrey are to be scrapped. The first voluntary racing blackout in the sport's modern history is expected to cost the industry about £700,000. The chosen day is just before the start of the St Leger Festival at Doncaster, which prime minister Sir Keir Starmer and his wife Victoria attended last year. The British Horseracing Authority (BHA) is campaigning against the Treasury's proposal to raise the 15 per cent tax paid by bookmakers on profits from racing and other sports bets placed in the UK to 21 per cent — the same level due on online slot and casino games. The sport is heavily dependent on the separate horseracing betting levy of 10 per cent paid by bookmakers on annual gross profits on racing wagers, which amounted to £108 million paid back into the industry in 2024-25. Industry bosses have warned that the government reforms could have catastrophic consequences. Jim Mullen, the chief executive of the Jockey Club, which owns the Kempton and Carlisle racecourses, warned the tax rise would cause 'irreparable damage that threatens a sport the nation is, and should be, proud of'. Industry experts say bookmakers are likely to seek to offset the impact of a tax hike by increasing prices, cutting bonuses and reducing advertising and marketing budgets while further promoting online gaming, which has lower overheads and fixed margins. Economic analysis commissioned by the BHA estimated the proposed 21 per cent tax rate would cause a £330 million loss in revenue to the industry in its first five years and put 2,752 jobs at risk in the first year alone. The nation's second-largest spectator sport is worth £4.1 billion to the UK economy, supports 85,000 jobs, and is attended by almost five million people a year. • Plan for betting tax will kill racing, warn sport's chiefs Gordon Brown, the former prime minister, has backed a separate plan proposed by the Institute for Public Policy Research to raise some betting taxes, including the duty on online casinos, from 21 per cent to 50 per cent. He said the moves would raise £3.2 billion a year, which could be used to lift welfare restrictions such as the two-child benefits cap. The collective decision to stop racing on September 10 is recognition of what the sport's differing factions regard as an existential threat. Race meetings in Britain usually take place on 363 days a year, with Christmas Eve and Christmas Day the exceptions. Although meetings have regularly been rescheduled due to adverse weather, and crises such as the equine virus outbreak and the Covid-19 pandemic have caused racing to be suspended in the past, this will be the first time in history the sport has decided to strike. The races will be rescheduled but the action, forecast to cost £500,000 in media rights and £200,000 in levy income, is designed to underline to the government the importance of betting revenue to the sport's health. Owners, trainers and jockeys will instead join racing leaders and MPs for a campaign event in Westminster. Mullen said: 'Our sport has come together today, and by cancelling racing fixtures, we hope the government will take a moment to reflect on the harm this tax will cause to a sport in which our country leads in so many ways.' Martin Cruddace, chief executive of Arena Racing Company, which owns Lingfield and Uttoxeter racecourses, described the threat of the tax as 'existential' to the sport. 'Unlike online casino games, British horseracing makes an enormous contribution to society and employment, has vastly different rates of gambling-related harm and is not available every ten seconds, 24 hours a day,' he said. 'We have always been taxed and regulated differently, and it is imperative for our future that we continue to be so. If the government wants Britain to be a world leader in online [casinos] and a world pauper in a sport at the heart of its culture, then tax harmonisation will achieve that aim.' • My audience with Frankel — king of racehorses Brant Dunshea, chief executive of the BHA, said: 'British racing is already in a precarious financial position and research has shown that a tax rise on racing could be catastrophic for the sport and the thousands of jobs that rely on it in towns and communities across the country. 'We haven't taken this decision lightly but in doing so we are urging the government to rethink this tax proposal to protect the future of our sport which is a cherished part of Britain's heritage and culture. 'Our message to government is clear: axe the racing tax and back British racing.' The Treasury argued in a consultation paper in April that a single duty would 'provide tax certainty and increase simplification for remote gambling'.


Daily Mail
an hour ago
- Daily Mail
New property law to divvy out $83 million to Arkansas residents
Thousands of Americans could soon find surprise checks arriving in their mailboxes thanks to a new state law aimed at reuniting residents with unclaimed money - without them having to lift a finger. Act 114 of 2025, which went into effect last week, allows the Arkansas State Auditor's office to automatically return property valued at less than $5,000 to its rightful owner if they live in the state and the auditor 'reasonably believes' it belongs to them - even if they never filed a claim. State Auditor Dennis Milligan says the change means the agency will start sending out nearly $83 million in unclaimed property to around 360,000 people in the coming months, with the average payout expected to be just over $100. 'The next two or three months is going to be a lot of fun for Arkansans, because the checks will start going out,' Milligan told the MH Observer. 'This program is very, very important to me. You know, $200 might not mean anything to one person, but it may mean the difference between being able to pay a utility bill or … put[ting] some food on the table.' One in four Arkansans has money sitting in the unclaimed property program, which the auditor's office manages alongside its other duties. In total, the office holds around $400 million in unclaimed assets - money that can come from abandoned checking accounts, uncashed rebate checks, insurance adjustments, and even unclaimed wages. Milligan says he's had his own small payday from the program: 'I got 20 bucks here a while back off of some kind of rebate. The office maintains a catalog of items from abandoned safe deposit boxes, including a World War II-era telegram referencing Gen. Dwight D. Eisenhower, a $10,000 bill, and signed Nolan Ryan baseball cards. Until now, reclaiming any amount - even a few dollars - required filling out paperwork and verifying identity. But Republican Sen. Dave Wallace of Leachville, who sponsored the bill, said Milligan approached him last year with the idea to streamline the process. 'The state has $238 that belongs to either me, or my wife, Karen, from some event a couple years ago. I didn't even know about it,' Wallace told the MH Observer. 'And there's going to be thousands and tens of thousands of Arkansans in that same situation.' The auditor's office will use software to confirm identities and addresses before mailing checks, with letters going out first to alert recipients. As long as the notice isn't returned as undeliverable, the check will follow a few weeks later. 'I mean, who can argue about Arkansans getting their money back?' Milligan said. 'I haven't had anybody complain yet.' The automatic payments only apply to amounts under $5,000. Anyone owed more than that - or with physical property or jointly held assets - will still need to file a claim through the state's unclaimed property database. Milligan still encourages residents to check the online database from time to time, noting that even Governor Sarah Huckabee Sanders has unclaimed property listed in her name.


Reuters
2 hours ago
- Reuters
Canadian government moves to end Air Canada strike, seeks binding arbitration
MONTREAL/TORONTO, Aug 16 (Reuters) - The Canadian government on Saturday moved to end a strike by Air Canada cabin crew by asking a labor board to order binding arbitration, an action that the country's largest carrier had sought and which the striking flight attendants opposed. Thousands of Air Canada ( opens new tab unionized flight attendants walked off the job over a wage contract dispute just before 1 a.m. EDT (0500 GMT), forcing Air Canada( opens new tab to cancel all of its 700 daily flights, affecting more than 100,000 travelers who had to find alternative flights or stay put. Jobs Minister Patty Hajdu at a news conference said she had asked the Canada Industrial Relations Board to impose binding arbitration on both sides and order an immediate end to the strike. Air Canada had indicated it would take four to five days to resume full operations, she said, assuming the board granted the government's request, which it usually does. The carrier had offered a 38% increase in total compensation for flight attendants over four years, with a 25% raise in the first year, which the Canadian Union of Public Employees said was insufficient. Attendants are currently paid only when their plane is moving. The union is seeking compensation for time spent on the ground between flights and when helping passengers board. Wesley Lesosky, president of the Air Canada component of CUPE, said in a press conference in Toronto earlier in the day that there were no bargaining sessions scheduled between the two sides, which have held on-and-off negotiations for months. Outside Toronto Pearson International Airport - the country's busiest - hundreds of cabin crew waved flags, banners and picket signs. Union officials called on members to assemble outside all of the country's major airports, including in Toronto, Montreal, Calgary and Vancouver. Montreal-based Air Canada said the suspended flights included those operated by its budget arm, Air Canada Rouge. The stoppage would affect about 130,000 customers a day, the carrier said in a statement. Flights by Air Canada's regional affiliates - Air Canada Jazz and PAL Airlines - will operate as usual. The union has said Air Canada offered to compensate flight attendants for some work that is now unpaid at 50% of their hourly rate. A source close to the negotiations told Reuters the union is looking for parity on wages with Canadian leisure carrier Air Transat, where flight attendants approved a contract last year that provided for total compounded increases of 30% over five years, making them the highest paid in the industry in Canada.