Arbitrator Rules in Favor of Air Canada in Flight Attendant Wage Dispute
An arbitrator has issued a decision largely supporting Air Canada's position in a contentious wage dispute with its flight attendants, ordering wage increases of more than 20 percent over four years for approximately 15,000 cabin crew members. The ruling, delivered by arbitrator Paula Knopf on February 17, 2026, comes after a tumultuous period that included a three-day strike in August 2025, which resulted in the cancellation of over 2,000 flights.
Details of the Arbitration Decision
In her decision, Knopf concluded that Air Canada's proposed wage increases were "within the normative range" of the airline sector. The collective agreement, retroactive to April 1, 2025, stipulates that mainline flight attendants will receive a pay increase of up to 12 percent in the first year, while attendants for the low-cost Rouge brand will get a 13 percent bump. For the subsequent three years, all cabin personnel will see raises of 3 percent, 2.5 percent, and 2.75 percent, respectively.
Notably, Air Canada will be paying one percentage point more than it initially proposed for Rouge flight attendants in the first year, according to sources familiar with the matter. The airline's original deal offered an overall compensation increase of around 40 percent over four years, including enhancements to pension and benefits, as well as premiums of 50 to 70 percent over the hourly rate for specific ground duties, such as cabin security tasks.
Union Reaction and Background
The Air Canada Component of the Canadian Union of Public Employees, which represents about 10,500 flight attendants, expressed disappointment with the outcome. In a Facebook post, the union stated, "This is not the outcome the union fought to achieve." The dispute escalated after union members overwhelmingly rejected a tentative agreement reached following the August strike, deeming the wage increases insufficient and prompting the arbitration process.
Knopf also rejected the union's request for a cost-of-living adjustment, further solidifying the airline's position. Historically, Air Canada flight attendants were only paid when the aircraft was in motion—a common industry practice that the union had sought to end. The arbitrator highlighted that the new premiums for ground duties represent "a significant and unique income advance in the airline sector."
Implications and Industry Context
This arbitration decision underscores the ongoing challenges in labor relations within the aviation industry, particularly as airlines navigate post-pandemic recovery and inflationary pressures. The ruling not only sets a precedent for wage negotiations at Air Canada but may also influence similar disputes across the sector, where flight attendants and other crew members are increasingly advocating for better compensation and working conditions.
The outcome reflects a balancing act between corporate sustainability and employee demands, with the arbitrator emphasizing sector norms in her determination. As Air Canada moves forward with implementing these wage increases, attention will turn to how this settlement impacts future labor talks and the overall operational stability of the airline.
