The union representing around 10,000 Air Canada flight attendants says it has declined a proposal from the airline to enter a binding arbitration process.
The latest hurdle in negotiations comes just hours before the Air Canada component of the Canadian Union of Public Employees could signal its intent to strike this weekend.
The earliest that flight attendants could potentially walk off the job is Saturday at 12:01 a.m. ET. Since the union must provide 72-hours notice if it plans to strike, that means it could declare its plans for a work stoppage any time starting Wednesday at 12:01 a.m. ET.
In an update shared online with its members on Tuesday afternoon, CUPE said the company has "decided they no longer want to negotiate." The union attached a letter that it received from Air Canada, dated Monday, in which the airline proposed going the arbitration route to secure a new contract.
In the meantime, that would suspend the union's right to strike, as well as Air Canada's right to lock out union members, the letter noted.
Last week, the flight attendants voted 99.7 per cent in favour of giving their union a strike mandate.
"After eight months of negotiation, we have been unable to reach a tentative collective agreement despite our best efforts and those of the Federal Mediation and Conciliation Service," stated the letter, signed by Air Canada executive vice-president and chief human resources officer Arielle Meloul-Wechsler.
"Engaging in interest arbitration will let the flight attendants, CUPE, Air Canada and Air Canada Rouge move forward without further delay and uncertainty, both of which weigh on us all."
The letter pointed out that Air Canada and CUPE have successfully used arbitration in previous negotiations.
But CUPE called it a "proposal to preserve an exploitative system and strip away (members') voice."
"Everyone knows that the best deals are made at the bargaining table, not handed down by an outside third party," the union said in its message to members.
It said that unlike with a tentative agreement reached through negotiations, members would not get a chance to vote on an arbitrator’s decision, which would be final.
The union also said arbitrators "rely on precedent and the status quo to make their determinations" which runs counter to its objectives in bargaining talks.
"Air Canada flight attendants are trying to break the status quo by ending the historic abuse of unpaid work in this industry," it said.
"Air Canada wants an arbitrator to do their dirty work for them to keep the status quo intact."
The union has said its main sticking points revolve around what it calls flight attendants' “poverty wages” and unpaid labour when planes aren't in the air.
It told members Tuesday it has put forward a proposal seeking cost of living enhancements each year, with a catch-up "to where we should be at for 2025." It is also seeking 100 per cent pay for all hours worked, noting Air Canada has so far proposed "to only recognize a portion of your vital safety contributions and only at 50 per cent."
A spokesperson for Air Canada did not immediately respond to a request for comment.
The union sent a formal response letter Tuesday declining Air Canada's proposal. It urged Air Canada to continue negotiating instead.
"Our membership has been clear in providing us with a strong strike mandate, reflecting their determination to secure a contract that addresses the key issues, including wages, unpaid work, per diems, pensions, work rules, and rest provisions, many of which are still outstanding," said Wesley Lesosky, president of the Air Canada component of CUPE, in the letter.
"We remain committed to using all available tools within the bargaining process to reach a negotiated settlement that meets the needs of our members."
This report by The Canadian Press was first published Aug. 12, 2025.
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Sammy Hudes, The Canadian Press
