Air Canada to resume operations after making deal to end flight attendants' strike
The union for Air Canada's flight attendants said early Tuesday that it had reached a tentative agreement with the company to end the more than three-day-long strike that prompted Canada's largest airline to cancel thousands of flights.
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Flights will 'gradually' resume operations on Tuesday night, Air Canada said in a statement, warning that the full restoration of services could take up to 10 days.
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The Canadian Union of Public Employees (CUPE), which represents 10,000 flight attendants at Air Canada, wrote on social media that it had completed mediation with Air Canada and its subsidiary Air Canada Rouge and that the strike that began on Saturday had ended.
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With this tentative agreement, the union said it was required to advise its members 'that we must fully cooperate with resumption of operations.'
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Air Canada said that mediation discussions began on the basis that the union would commit to have its flights attendants immediately return to work.
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Thousands of Air Canada's flight attendants walked off their jobs after negotiations for a new contract broke down, defying multiple orders by the government to return to their duties.
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Part of the contract negotiations entailed raises, with the union saying that Air Canada's flight attendants were paid less than those with similar experience working at smaller domestic carriers. The union was also seeking 'ground pay' — compensation for the hours that attendants work at the airport, such as when passengers are boarding. Other airlines, including Alaska, American and Delta, offer ground pay for flight attendants.
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The strike caused significant disruptions in Canada and abroad — Air Canada grounded nearly 2,600 flights as of late Monday afternoon, according to data provided by aviation analytics firm Cirium — affecting more than 500,000 customers.
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'The suspension of our service is extremely difficult for our customers. We deeply regret and apologize for the impact on them of this labour disruption. Our priority now is to get them moving as quickly as possible,' Michael Rousseau, president and chief executive of Air Canada, said in a Tuesday statement.
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The day the strike began, the Canadian government asked an independent federal tribunal to order the flight attendants to return to work and submit to binding arbitration. The union refused to comply and then defied a second deadline from the tribunal on Monday to resume work.
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Toronto Sun
4 minutes ago
- Toronto Sun
After Air Canada strike, Section 107 of labour code is 'dead,' says union leader
'Passenger from hell' vomits, spits wine at family during flight to London After Air Canada strike, Section 107 of labour code is 'dead,' says union leader Photo by Darren Makowichuk / Postmedia Article content OTTAWA — A rare show of defiance by Air Canada flight attendants in the face of a back-to-work order from the government has proven the ineffectiveness of the section of Canada's labour code that allows a minister to order the end to a strike or lockout, the president of the Canadian Labour Congress said. Advertisement 2 Story continues below 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. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. 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 Don't have an account? Create Account or Sign in without password View more offers Article content On Aug. 16, just hours after flight attendants hit the picket line after failing to reach a new contract deal with the airline, Jobs Minister Patty Hajdu invoked section 107 of the Canada Labour Code to order binding arbitration and get the flight attendants back on the job. The section grants the minister the power to act to 'maintain or secure industrial peace.' Article content tap here to see other videos from our team. Try refreshing your browser, or After Air Canada strike, Section 107 of labour code is 'dead,' says union leader Back to video tap here to see other videos from our team. Try refreshing your browser, or Play Video Article content Flight attendants ignored the order and remained on strike until a deal was finally reached early Tuesday, a move Canadian Labour Congress President Bea Bruske lauded as effective. 'It sets a precedent (that) you can defy, and you will find a solution at the bargaining table,' Bruske said Tuesday in an interview with The Canadian Press. 'It sets a precedent for the reality that (section) 107 is no longer effective, it is effectively dead.' Advertisement 3 Story continues below This advertisement has not loaded yet, but your article continues below. Article content 'The best way to deal with it is to remove it entirely because unions, workers, the labour movement has been emboldened by this and we're not going to turn around.' Section 107 has been in the Canada Labour Code for more than 40 years but using it has become more common particularly in the last year. The Canadian Labour Congress says the Liberals have resorted to section 107 eight times since June 2024, including to prevent a strike by WestJet mechanics, and to end strikes or lockouts at the country's two main railways, ports in Montreal and Vancouver and temporarily a strike and lockout at Canada Post. Before then, section 107 was only used a handful of times, says the Canadian Labour Congress, including four times between 1995 and 2002. In 2011, the CLC says then-labour minister Lisa Raitt used section 107 after flight attendants rejected two tentative agreements, though the parties ultimately voluntarily agreed to send their dispute to binding arbitration. The CLC says it was used one other time between 2011 and 2024. Your Midday Sun Your noon-hour look at what's happening in Toronto and beyond. There was an error, please provide a valid email address. Sign Up By signing up you consent to receive the above newsletter from Postmedia Network Inc. Thanks for signing up! A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Your Midday Sun will soon be in your inbox. Please try again Article content Advertisement 4 Story continues below This advertisement has not loaded yet, but your article continues below. Article content Initially the government didn't seem willing to turn to it quickly to end the Air Canada work stoppage. On Aug. 17, a few hours before the deadline set by the union representing flight attendants to reach a new contract deal, Hajdu urged the airline and the union to go back to the negotiating table, and suggested she wasn't ready to intervene in the dispute. Hajdu told The Canadian Press that day that it was 'critical' the two sides return to the table to forge a deal on their own. The strike officially began just before 1 a.m. ET on Saturday and in turn, Air Canada locked out its agents about 30 minutes later due to the strike action. Hajdu announced just after 12 p.m. on Saturday that she was invoking the labour code section and directing the Canada Industrial Relations Board to order Air Canada and the Canadian Union of Public Employees to resume operations and resolve the dispute through binding arbitration. Advertisement 5 Story continues below This advertisement has not loaded yet, but your article continues below. Article content The minister said she made the call after meeting with both sides Friday night, finding that talks had broken down and the parties remained too far apart to resolve the conflict quickly enough. But CUPE defied the order, flight attendants stayed on the picket line and the union launched a legal challenge of the government's move. On Monday, the Canada Industrial Relations Board board declared the strike unlawful and ordered the union's leadership to tell its striking workers to go back to work. The federal government also announced that it was launching a probe into allegations of unpaid work in the airline sector. The union and Air Canada met late Monday night and very early Tuesday morning announced a tentative agreement had been reached, ending the work stoppage. Advertisement 6 Story continues below This advertisement has not loaded yet, but your article continues below. Article content Bruske acknowledged that Air Canada workers' defiance of back-to-work orders could set a precedent for future strikes. She said that, while the government was under 'a lot of pressure' from business groups and customers to avoid a disruption, their interference 'caused more of a problem than it solved.' 'It really gave the employer a way to avoid having to get serious at the bargaining table,' Bruske said. tap here to see other videos from our team. Try refreshing your browser, or Play Video When the union decided to defy the return-to-work order, Bruske said it sent a 'strong message' that the only way to resolve the issue is at the bargaining table, 'which is where it needed to be found all along.' Bruske noted that the government used the labour code to force the Canadian Union of Postal Workers to vote on an offer from Canada Post, an offer the workers rejected. Canada Post and the union are returning to the bargaining table Wednesday. Advertisement 7 Story continues below This advertisement has not loaded yet, but your article continues below. Article content 'The labour movement is going to be with them no matter what they choose to do,' Bruske said. She said CLC and its affiliate unions, including the Canadian Union of Postal Workers, met on Sunday and labour leaders were unanimous that they supported CUPE in defying back-to-work orders and that they will 'do whatever' to support them. CUPE national president Mark Hancock said that, given the availability of Section 107, it seemed like the company felt that they didn't need to negotiate and were instead preparing to go to binding arbitration. Once it was 'pushed to the side,' Hancock said the company 'got serious' at the bargaining table and a tentative deal was reached. 'Hopefully this has sent a message to government and to everybody that the way to get a deal and a collective agreement is at the bargaining table,' Hancock said. 'Section 107 is just an impediment that makes it much more difficult to get an agreement on the table.' Advertisement 8 Story continues below This advertisement has not loaded yet, but your article continues below. Article content While he doesn't agree with forcing workers back in a dispute, Hancock said other options, like back-to-work legislation debated in Parliament, are more democratic. 'We're gonna continue talking about 107 and I'm hoping the government never, ever, ever uses it again because it's not a helpful tool,' he said. Hancock encouraged future unions that have to face Section 107 to 'respond appropriately.' He also said it's still unclear if there will be any consequences for the union or its members as a result of the strike but that CUPE will protect and defend workers and their jobs. 'Hopefully Air Canada has learned a lesson that we're not going to back down when it comes to bargaining and that we'll be there to support our members every step of the way,' Hancock said. 'I'm sure Air Canada wants to put this behind them and move forward and if they start disciplining or attempting to discipline people, that's not gonna be helpful for them or anybody.' Advertisement 9 Story continues below This advertisement has not loaded yet, but your article continues below. Article content Daniel Safayeni, president and CEO of FETCO, an employers' association comprised of federally regulated firms within the transportation and communications sectors, said CIRB and the Supreme Court have affirmed the constitutionality of Section 107, recognizing that the right to strike can be limited in exceptional circumstances when justified by threats to national economic stability. 'There is a time and place for the usage of this,' Safayeni said, adding that something like a special mediation process could be used before the invocation of Section 107. 'At the end of the day, the government is going to need a tool to keep particularly critical industries, critical supply chains moving, if a deal can't be reached.' He said unions are entitled to challenge decisions in court but can't just ignore orders because that 'sets a dangerous precedent.' 'That is normalizing behaviour that frankly, I think when we look south of the border, we see it and we are shocked and disappointed to see it, and I don't think we want to replicate those same norms here,' Safayeni said. — with files from Kyle Duggan and Craig Lord Read More Unpaid work for flight attendants could be on the way out as union declares win Air Canada routes within North America to ramp up this morning as restart continues Article content Share this article in your social network Read Next
Globe and Mail
4 minutes ago
- Globe and Mail
Business Brief: The price of protecting Air Canada
Good morning. Air Canada says it could take up to 10 days for operations to return to normal after a tentative deal with flight attendants ended the strike. For passengers, frustrations may linger far longer. That's in focus today, along with a look at what's fuelling inflation. Inflation: Canada's annual inflation rate slowed to 1.7 per cent in July. But that was mainly owing to a decline in gasoline prices, which reflected Ottawa's removal of the consumer carbon tax. Trade: The U.S. is hiking steel and aluminum tariffs on more than 400 products including appliances, railcars, and EV parts. Energy: Alberta carbon-capture test site is powering up despite an uncertain cleantech outlook. Catch up quick: Air Canada resumed flying yesterday afternoon after reaching a tentative labour agreement with the union that represents its 10,000 flight attendants, who had been on strike since Aug. 16. The cost of returning to autopilot: Now that Air Canada has agreed to pay cabin crew for their work before takeoff and after landing, the airline could turn to strategies to offset those losses, such as: Given Canada's foreign ownership restrictions, Air Canada may be more inclined to push some of those options further than others. That's because WestJet – the only other Canadian competitor its size – isn't giving it much of a race. They're both just sort of jogging at the pace of a couple of baseball players headed toward the dugout. In the U.S., where markets are less regulated, consumer choice compels companies to cut costs. Canada's oligopolistic airline industry faces no such pressure, writes Eugene Lang, acting director of the School of Policy Studies at Queen's University. Geoff White, executive director and general counsel at the Public Interest Advocacy Centre, said Canadian travellers are stuck with the effects of an uncompetitive industry – unless policymakers step in. 'This will take a legislative fix – this is fundamentally a failure of competition,' White told The Globe. 'When it comes to Canada's addiction to monopolies, it's a matter of political will.' The case for changing course Beyond lowering prices, competition also presses companies into becoming more efficient and innovative – two factors that lead to productivity growth, which basically means making more of something with the same amount of work. Being able to produce more of a good or service allows a company to invest more in skills or equipment, and to pay higher wages. That means productivity growth also helps companies and their employees navigate higher costs. Rather, it might have: Productivity has flatlined in recent years as Canadian businesses invest at levels that rank among the lowest of its peers in the OECD. That weakness leaves households more vulnerable to rising costs. Yesterday's inflation report might suggest Canada is holding up better than expected since U.S. tariffs went into effect, but prices for shelter and groceries are still high, and getting higher. The strain has put fresh focus on whether government policy can bring relief — including proposals to boost competition in the airline industry. In June, the federal competition watchdog recommended 10 ways Ottawa could boost competition in the airline industry. Two of those recommendations were to open the skies to more foreign investment, and to allow foreign airlines the ability to fly domestic routes. More competition delivers major benefits to Canadian travellers, the report found. New companies have entered the market and are making progress, the authors noted, yet Canada's domestic aviation market remains 'highly concentrated.' Some industry leaders pushed back, arguing too much foreign money and competition for domestic routes – a practice known as cabotage – would be devastating to Canada's homegrown employers. (Air Canada called the very premise that the country lacks competition a 'myth,' instead blaming high government charges for keeping prices elevated. There's a lot of truth in the taxation argument, but little evidence that eliminating them would lead to more spending on innovation.) The government, by and large, seems to agree with the industry – it isn't expected to enforce the watchdog's recommendations – and applies similar logic in protecting banks and telcos. Basic offerings from the Big Six make the banks virtually interchangeable for most Canadians. And have you ever caught yourself pausing to remember if you're a Bell or Rogers customer because you've bounced between them more than once? Ottawa could allow more competition, Air Canada could feel more pressure to innovate, and Canadians could see cheaper fares. Instead, consumers are left with rising costs and fading patience — in an economy where protecting incumbents has become the default across airlines, banks, and telecoms alike. Crypto thefts in 2025 have already topped US$2.17-billion – surpassing all of 2024. In real estate: The collapse of an Ontario brokerage is raising questions about the industry's financial oversight. On autopilot: Tesla must face a class action over self-driving claims, a U.S. judge has ruled. Crushing beers: The Beer Store is closing several locations in Ontario. Here's what you need to know. Global markets came under pressure after a tech-led selloff on Wall Street yesterday. U.S. futures pointed lower, while TSX futures pointed higher. Overseas, the pan-European STOXX 600 was up 0.15 per cent in morning trading. Britain's FTSE 100 rose 0.29 per cent, Germany's DAX fell 0.34 per cent and France's CAC 40 edged up 0.06 per cent. In Asia, Japan's Nikkei closed 1.51 per cent lower, while Hong Kong's Hang Seng inched up 0.17 per cent. The Canadian dollar traded at 72.08 U.S. cents.
Cision Canada
34 minutes ago
- Cision Canada
TERRAVEST ANNOUNCES NORMAL COURSE ISSUER BID FOR ITS COMMON SHARES
VEGREVILLE, AB, Aug. 20, 2025 /CNW/ - TerraVest Industries Inc. (" TerraVest" or the " Corporation") (TSX: TVK) announced today that it has received the approval of the Toronto Stock Exchange (the " TSX") to make a normal course issuer bid (the " Bid") for up to 1,558,516 of its issued and outstanding common shares (the " Shares") on the TSX. Purchases under the Bid may commence on August 22, 2025 and will terminate on August 21, 2026 or on such earlier date as the Bid is complete. Purchases of Shares will be made either through the facilities of the TSX in accordance with its rules or through alternative Canadian trading systems. The average daily trading volume of the Shares for the six calendar months ended July 31, 2025 (" ADTV") was 91,713 Shares. Subject to the TSX's block purchase exception, on any trading day, purchases under the Bid will not exceed 22,928 Shares. The price that the Corporation will pay for any Shares purchased under the Bid will be the prevailing market price at the time of purchase. Any Shares purchased by the Corporation will be cancelled. As of August 8, 2025, there were 21,685,695 Shares issued and outstanding. The 1,558,516 Shares that may be repurchased under the Bid represent approximately 10% of the public float of Shares on August 8, 2025. The Board of Directors of the Corporation has authorized the Bid because it believes that it is an efficient use of the Corporation's financial resources to purchase Shares when the market price of the Shares does not fully reflect their underlying value. This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of TerraVest; statements related to the timing and quantity of any purchases of Shares under the Bid, our strategic direction and evaluation of the business segments and TerraVest as a whole; and other plans and objectives of or involving TerraVest. Readers can identify many of these statements by looking for words such as "expects", "may" and "will" or similar terms or variations of these words. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. By their nature, forward-looking statements require us to make assumptions and, accordingly, forward- looking statements are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements. Assumptions and analysis about the performance of TerraVest as a whole and its business segments, the markets in which the business segments compete and the prospects and values of the business segments are considered in setting the business plan for TerraVest, plans and/or ability to pay dividends, outlook for operations, financial position, results and cash flows, other plans and objectives and in making related forward-looking statements. Such assumptions include, without limitation, demand for products and services of the business segments in respect of the Canadian and other markets in which the businesses are active will be stable, and that input costs to business segments do not vary significantly from levels experienced historically. Should any of these factors or assumptions vary, actual results may differ materially from the forward-looking statements.
