Anabelle Colaco
24 Aug 2025, 22:26 GMT+10
MONTREAL/CHICAGO: Air Canada's tentative labor deal with its flight attendants, reached after a crippling strike that grounded thousands of flights, may mark a turning point in how airlines across North America compensate cabin crews for their work.
The union, representing more than 10,000 attendants, said the agreement ends unpaid work, though details were not disclosed. Analysts believe the breakthrough could ripple across the industry, where disputes over pay and compensation practices have fueled growing unrest.
The four-day strike disrupted travel for over 500,000 passengers and highlighted a longstanding complaint: flight attendants are paid mostly when planes are in motion, leaving tasks like boarding, deplaning, and ground duties effectively unpaid.
"The Air Canada strike helps negotiations everywhere," said Sara Nelson, international president of the Association of Flight Attendants-CWA, which represents 55,000 U.S. flight attendants. "It defined the problem of ridiculous expectations for flight attendants to work without pay."
Her union is in talks with United Airlines, where attendants last month voted down a US$6 billion tentative deal because it did not include ground pay. Workers at American, Southwest, and Alaska Airlines have also rejected recent agreements on similar grounds.
Air Canada CEO Michael Rousseau acknowledged the industry must rethink compensation models. "We all should be open to change," he told Reuters, confirming the company has accepted the principle of ground pay.
Some U.S. airlines have already moved. Delta, whose attendants are non-unionized, began paying for boarding time in 2022, spurring American and Alaska to adopt similar policies.
For workers, the issue is tied to rising living costs and workloads. Shanyn Elliott, a flight attendant with Air Canada Rouge, recalled starting in 2017 at C$23 an hour, often flying long-haul routes to make ends meet. Delays after the pandemic stretched her hours further.
But paying for boarding and ground time will increase airline costs. American Airlines estimates its new contract will add $4.2 billion in expenses over five years. At Air Canada, Canaccord Genuity analyst Matthew Lee projects wage hikes could raise costs by up to C$140 million, after its wage bill has already climbed 26 percent since before the pandemic.
Air Canada is also under financial pressure, posting a nearly 40 percent drop in quarterly profit due to weak U.S. passenger traffic and trade tensions. Still, analysts say resisting change risks more strikes. "The movement is on," said John Gradek, aviation management lecturer at McGill University.
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