Arbitrator Confirms Air Canada Wage Deal

• Arbitrator Paula Knopf ruled the wage rates were within the normative range for the sector and must be considered alongside other improvements to working conditions
• Flight attendants will now receive ground pay for pre-flight work such as boarding passengers, a practice Delta Air Lines pioneered in 2022
• Wage rates for Air Canada's budget carrier Rouge were increased to match comparable Canadian airlines, addressing pay disparity concerns

Summary: Air Canada Wage Arbitration Ruling

Key Development: A Canadian arbitrator on Tuesday upheld Air Canada's offer to raise flight attendant wages by more than 20% over four years, ending a dispute that triggered a four-day strike by cabin crew in 2025.

Background: The tentative agreement between Air Canada and the Canadian Union for Public Employees was signed in August 2025, but wage disputes required arbitration after both parties failed to reach consensus.

Arbitrator's Decision: Paula Knopf ruled that Air Canada's proposed wage rates fall within the normative range for the aviation sector and must be considered alongside other improvements to working conditions. The decision represents a setback for flight attendants who argued the raises were insufficient to cover rising living costs, particularly in expensive cities like Toronto.

Key Changes:

• Flight attendants will now receive compensation for ground work in addition to flight time
• Workers will earn a portion of hourly wages for tasks such as passenger boarding
• Wage rates for Rouge, Air Canada's budget airline, were increased to match comparable Canadian carriers

Industry Context: The inclusion of ground pay aligns Air Canada with broader industry trends in North America. Delta Air Lines pioneered this approach in 2022, and unions representing cabin crew have been pushing for similar benefits across the sector for several years.

Market Implications: The ruling provides wage certainty for Air Canada over the four-year agreement period, potentially stabilizing labor costs and reducing disruption risks for the carrier's operations.