UPDATED: Will They Or Won't They?

No doubt, the temptation is great. With a stroke of a pen, the Liberal government could curry massive favour from both powerful corporate forces and the flying public, ordering striking Air Canada flight attendants back to work pending binding arbitration, whereby the labour dispute is put before an arbitrator for final resolution.

Such a decision would be a massive mistake and a grave injustice to collective bargaining in general and the striking personnel in particular, yet I fear that is precisely what our 'new' government will do. 

Consider the powerful forces calling for arbitration: Air Canada itself, which estimates a revenue loss of $50-60 million dollars per day. As well, 

[b]usiness groups have meanwhile warned of the damage a protracted dispute will do to the economy and have called on the government to consider all its options for ending the dispute — including imposing binding arbitration.

The request for  arbitration was sent to Jobs Minister Patti Hadju, who, for now, wants the two sides to keep bargaining. But how much real bargaining can there be if the hope/expectation is for government intervention?

The previous government, led by Justin Trudeau, ordered binding arbitration for both striking railways and B.C. port workers; in both cases, it could be argued they did so in the national interest, given the role both play in the economy and. that they exist almost as essential services. The same, however, cannot be said about air travel, especially when alternatives to Air Canada exist.

Brock University labour professor Larry Savage has this to say about the threat of arbitration:

“Management at Air Canada is taking a strategic cue from employers in the ports and the railways,” said Savage. 

While he said there is “a long tradition” in Canada of government intervention in labour disputes, Savage said the increasing reliance on Section 107 of the labour code is “troublesome” because it allows the minister to take action without any parliamentary debate, as would be necessary for governments to pass back-to-work legislation. 

“It also highlights how easily collective bargaining rights can be trampled on,” said Savage. 

“When the government swoops in only at the behest of employers, it undermines our entire system of labour relations.” 

The response from CUPE, the flight attendants union, was unequivocal.

The Air Canada Component of CUPE has respectfully urged Employment Minister Patty Hajdu not to intervene pursuant to section 107 of the Canada Labour Code thereby permitting collective bargaining to continue and allowing the parties to negotiate a resolution.

The integrity of the collective bargaining process depends on allowing the parties to reach a resolution through free and fair negotiations, without undue interference.

Rather than continuing to negotiate in good faith, Air Canada appears to have anticipated government intervention and has opted to suspend meaningful discussions, contrary to its legal obligation to bargain in good faith.

On August 12, 2025, Air Canada unilaterally declared an impasse and withdrew from the bargaining table. It has not returned. On August 12, 2025, unbeknownst to the Union, the Company made an extraordinary and premature request to the Minister seeking the application of section 107 to prevent a strike or lockout.

It is clear from Air Canada’s submissions to the Minister that it had planned to withdraw from bargaining and ask the Minister to interfere with the bargaining process.

The mere prospect of ministerial intervention has had a chilling effect on Air Canada’s obligation to bargain in good faith. Air Canada’s request for intervention should be denied. Such a decision would reaffirm the principles of free collective bargaining and compel Air Canada to return to the bargaining table – where it ought to be – and engage meaningfully in negotiations, where it is likely that the Parties may be able to reach an agreement.

You can read the full statement at the link above.

Finally, I leave you with a satirical video, a link to which a commentator left on my previous post that perhaps puts things into their proper perspective:

UPDATE: Well, they did. Captured as they are by big business, the Carney government has announced the end of the strike by mandating binding arbitration. You can read this pathetic tale using the link.