An arbitrator has set final wage rates for flight attendants at Air Canada, resolving a labor dispute that caused travel disruptions last summer.
The arbitrator upheld the rates agreed upon in a tentative deal for Air Canada’s mainline flight attendants but increased the first-year raise for those at Rouge.
The bargaining committee representing the Air Canada unit of the Canadian Union of Public Employees (CUPE) expressed disappointment with the outcome.
Last August, more than 10,000 Air Canada flight attendants went on strike, affecting numerous travelers.
The Canadian government intervened in the strike shortly after it began, invoking Section 107 of the Canada Labour Code to mandate binding arbitration between the airline and the union. The Canada Industrial Relations Board ordered the flight attendants back to work the following day.
Despite the order, union officials defied it, leading the board to declare the strike illegal while the union vowed to continue.
Negotiations between the company and the union resumed a few days later, eventually resulting in a tentative agreement.
Many aspects of the tentative agreement, such as rules on pensions, health benefits, rest periods, and vacations, were already considered final by both Air Canada and the union.
However, in September, Air Canada’s flight attendants voted overwhelmingly, with over 99%, to reject the wage offer in the agreement.
It was agreed that if the deal was rejected, the wage portion would go through mediation and arbitration if no resolution was reached.
Key Contract Details
The contract includes a 12% salary increase for junior Air Canada flight attendants this year and an 8% raise for senior members in the first year.
Rouge flight attendants will see a 13% increase in the first year, up from the initial agreement.
Both Air Canada and Rouge flight attendants are set to receive a 3% raise in the second year, 2.5% in the third year, and 2.75% in the fourth year under the agreement running until March 2029.
The contract also addresses the issue of unpaid work during ground time when aircraft are not flying.
Flight attendants will now receive a percentage of their hourly wage rate for ground time, with incremental increases over the coming years.
A recent government probe into unpaid work allegations by Air Canada flight attendants found no violations of the federal minimum wage requirement for employees in federally regulated industries.
However, the report highlighted the need for closer examination of compensation practices for part-time and entry-level flight attendants in the airline sector.