Air Canada and the union representing 10,000 striking flight attendants resumed initial talks on Monday night, the first contact in nearly a week, according to a statement from the Canadian Union of Public Employees (CUPE).
The walkout, which began Saturday after contract talks broke down, has disrupted travel for hundreds of thousands of passengers. Despite the Canada Industrial Relations Board declaring the strike illegal, CUPE has refused to return to work. The latest discussions are taking place in Toronto with mediator William Kaplan, the union confirmed on Facebook.
Before the meeting, the two sides had not spoken since the strike began. Sources told Reuters that talks include whether to enter formal mediation-on the condition that flight attendants go back to work.
Jobs Minister Patty Hajdu has urged both sides to reach a settlement quickly. Air Canada CEO Mike Rousseau defended the airline’s compensation proposal, saying it would increase pay by 38%, though he acknowledged a “big gap” remains with the union’s demands. Hours later, Hajdu escalated pressure by launching a probe into airline pay practices, saying a negotiated deal would deliver the “best outcome.”
The union, however, has stood firm, insisting the strike will continue until pay and unpaid work issues are addressed. Flight attendants want higher wages and payment for time spent on boarding and ground duties, which currently goes unpaid. Hajdu said she was surprised by the allegations of unpaid labour and has ordered an investigation into the wider airline sector.
Union leaders said they are prepared to risk jail rather than accept a back-to-work order. Rousseau called the strike unlawful and damaging to customers and the company’s reputation but said Air Canada remains open to dialogue. The airline claims its four-year offer represents a 17.2% pay increase, while CUPE says that is not enough.
Prime Minister Mark Carney appealed for a resolution, warning that “hundreds of thousands of Canadians and visitors” were being caught up in the dispute. The strike, now in its third day, has forced Air Canada to suspend its financial guidance for the year and sent its shares down nearly 3%. The carrier, which flies about 130,000 people daily as part of Star Alliance, is already under pressure from reduced U.S. bookings.
Passenger frustration is also mounting. Some, such as Winnipeg resident Danna Wu, expressed sympathy for the attendants’ demands but criticised the disruption, saying travellers were being left “in chaos.”
The Canadian government has several options, including court enforcement of the labour board’s order or legislation to end the strike. While Ottawa has previously intervened in major labour disputes, it is rare for a union to openly defy the CIRB, raising the stakes in an already tense standoff.
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