Today, February 17, 2026, Arbitrator Paula Knopf issued her award in the wage rate arbitration dispute.
By way of background, the arbitration occurred due to Minister Hajdu invoking section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to end the Union’s strike and refer all outstanding matters to binding interest arbitration. The Union defied the back-to-work order and continued the strike. Cabin Personnel continued to walk the picket lines despite Air Canada’s assertions that the strike was illegal. On August 19, 2025, the Union and Air Canada signed Minutes of Settlement (“MOS”) containing the following terms:
1. The Union would end the strike;
2. Air Canada would not seek fines or damages with respect to the Union’s strike activities;
3. “agreed items” such as terms relating to unpaid work, passport fee reimbursement, etc. would form part of the 2025–2029 Collective Agreement; and
4. Air Canada’s wage proposal would proceed to a ratification vote and, if it was not ratified, the wage rate dispute would proceed to arbitration
The wage proposal was overwhelmingly rejected by the Membership. The outstanding wage rate arbitration took place in January 2025 and the award was released today.
The Arbitrator found that Air Canada and CUPE never reached a tentative agreement on the issue of wage rates for Cabin Personnel. The Arbitrator further found that the MOS served as evidence that Air Canada was willing to implement all the priorities the Union had left on the bargaining table, while knowing that if the wage rates were not ratified, they might be increased in the arbitration process.
The Arbitrator found that the wage rates offered by Air Canada were generally within the normative range for this sector and had to be assessed in light of the other substantial improvements that had been secured, improvements characterized as breakthroughs. The Arbitrator concluded that the Minutes of Settlement presented a strong foundation for the determining the applicable wage rates, with one exception. The wage rates offered for Rouge were not consistent with the Parties’ pattern of bargaining and were increased to help ensure they did not fall below the rates of other comparable Canadian airlines.
The Arbitrator determined that Cabin Personnel’s wage rates should be increased by the following percentages:
• April 1, 2025 – For Mainline 12.0%, steps 1 to 9; 8.0% for all other steps
– For Rouge 13.0%, all steps
• April 1, 2026 – For Rouge and Mainline 3.0%, all steps
• April 1, 2027 – For Rouge and Mainline 2.5%, all steps
• April 1, 2028 – For Rouge and Mainline 2.75%, all steps
The full award is contained HERE and a summary of the award is HERE.
This is not the outcome the Union fought to achieve.
In solidarity,
Your Bargaining Committee