Air Canada flight attendants overwhelmingly rejected a tentative wage agreement, setting the stage for mediation and potential arbitration in a prolonged labor dispute. Following an initial four-day strike in August that disrupted thousands of flights, a new contract offer was put to a vote, but a staggering 99.1% of the more than 10,000 flight attendants voted against it. The rejection, announced on a Saturday, underscores deep dissatisfaction among cabin crew regarding compensation and working conditions.

The dispute centers on several key issues, most notably the structure of flight attendant pay. Historically, flight attendants are largely compensated only when an aircraft is in motion, a practice that has drawn increasing scrutiny and challenge across North America. The rejected four-year deal aimed to address this by introducing pre-flight pay: 60 minutes for narrowbody planes and 70 minutes for widebody jets. This pay would start at 50% of the flight attendants' hourly rate in the first year, gradually increasing to 70% by the fourth year of the contract. Additionally, the proposed contract included wage hikes, with specific figures reported differently across sources, ranging from 8% to 12% retroactive increases with subsequent annual raises of 3%, 2.5%, and 2.75%, to estimates of up to 20% for entry-level attendants and 16% for more experienced crew over the four-year term. Overall compensation, including pension and benefits, was estimated by Bloomberg to be around a 40% increase over four years.

Despite these provisions, flight attendants deemed the offer insufficient to cover the rising cost of living, particularly in expensive urban centers like Toronto, with many reporting the need to work multiple jobs to make ends meet. The core complaint remained the issue of unpaid labor, specifically the time spent by crew members from check-in to clock-out when not airborne. Sara Nelson, International President of the Association of Flight Attendants, highlighted the 'inspirational fight' of Air Canada attendants, noting its positive impact and momentum for similar demands by US members, including those at United Airlines who also recently rejected a tentative agreement over ground pay issues. Delta Air Lines, in 2022, became a trailblazer among US carriers by implementing pay for flight attendants during boarding time.

The tentative deal had been struck under a mediator in August, following the strike that forced Air Canada back to the bargaining table. The union, Canadian Union of Public Employees (CUPE) President Mark Hancock, indicated that criminal contempt charges were a looming threat if a deal had not been reached at that time. With the rejection, however, further legal strike action is prohibited. Instead, the matter will proceed to mediation, and if unresolved, will move to arbitration. Air Canada reiterated its commitment to this process, assuring the public that flights would continue to operate without interruption, stating, 'There will be no strike or lock-out, and flights will continue to operate.'

The prolonged dispute has already impacted Air Canada, which previously withdrew its financial guidance for 2025. Analysts estimate the new contract, had it been ratified, could have added over C$600 million (approximately $434 million) to the airline's costs over the period, considering that wages, salaries, and benefits constituted about 23% of its operating costs last year.