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Terms of the tentative deal shared by the Air Canada component of the Canadian Union of Public Employees on its website include a 12 per cent salary increase this year for most junior flight attendants, while more senior members are set for an eight per cent pay bump.

All members are set for a three per cent raise in 2026, followed by 2.5 per cent in 2027 and 2.75 per cent in 2028.

The proposed deal must be ratified by the flight attendants, with a vote scheduled to take place from Aug. 27 to Sept. 6.

However, while members are set to vote on the full package, a large chunk of the terms within it — such as those setting out rules for pensions and retirement bridging, health benefits, prone rest and vacation — are already considered final, as agreed to by both Air Canada and the union.

If the deal is not ratified by union membership, CUPE said all terms excluding those surrounding wages would still form part of the new collective agreement for Air Canada's flight attendants

The wages portion of the agreement would then proceed to arbitration, where a third-party arbitrator making a final decision.

The tentative agreement, which would run until March 2029, addresses the contentious issue of unpaid work while airplanes are not in the air.

Starting this year, flight attendants would receive half their hourly wage rate for 60 minutes of ground time on narrow-body aircraft and 70 minutes on wide-body planes.

That would rise to 60 of the hourly wage rate next April, 65 per cent in 2027 and 70 per cent in 2028.

The terms surrounding ground pay are also considered final, regardless of the results from the upcoming ratification vote.

Air Canada's flight attendants went on strike last Saturday. The federal government intervened in the strike less than 12 hours later, invoking Section 107 of the Canada Labour Code to force the airline and the union into binding arbitration. The Canada Industrial Relations Board ordered flight attendants to return to work Sunday.

That order was defied by union officials, leading the board to state Monday that the strike was unlawful even as the union said it would press ahead. 

The company and union resumed negotiations Monday evening before reaching a tentative agreement overnight.

Two days after restarting operations following the strike's conclusion, Air Canada said Thursday it expects most of its domestic and international routes to be back up and running 

An online dashboard tracking Air Canada's service resumption said Thursday morning that 98 per cent of domestic flights were expected to operate over the next 24 hours, along with 99 per cent of U.S. flights.

The airline's ramp-up of international flights has also nearly caught up, with 94 per cent of planned flights expected to operate.

Air Canada chief operations officer Mark Nasr said earlier this week that the restart process would take longer for international routes because the airline brought crews home before the strike.

That means that when the strike ended, crews weren't in position overseas to staff return flights back to Canada.

It is expected to take up to 10 days for service to return to normal levels across Air Canada and Air Canada Rouge.

On Wednesday, the company said it was adopting a policy to reimburse certain customers if they booked alternative transportation in lieu of cancelled flights between Aug. 15 and Aug. 23.

This report by °µÍø½ûÇø was first published Aug. 21, 2025.

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