Air Canada (TSX:AC.B) will gradually resume flights starting on Tuesday evening after the airline and the Canadian Union of Public Employees (CUPE) have reached a tentative agreement, ending a strike by the airline's flight attendants.
More than 10,000 flight attendants walked off the job early Saturday, grounding flights and disrupting travel for an estimated 500,000 passengers over nearly four days.
The job action focused on pay increases, scheduling issues, and compensation for unpaid duties such as boarding, safety checks, and waiting during delays.
The Canadian Industrial Relations Board declared the strike unlawful and ordered workers to return less than 12 hours after the strike began, but the union initially defied the ruling.
Following nine hours of government-assisted mediation, both sides announced a deal that will now be put to CUPE members for a ratification vote.
While the terms of the agreement have not been fully disclosed, CUPE said the deal includes guaranteed ground pay for the first time, referring to wages for work performed while aircraft are on the ground, such as boarding, unloading, or during cancellations and delays.
The union called the agreement “historic” and said it marks the end of unpaid work for Air Canada’s flight attendants. “Unpaid work is over. We have reclaimed our voice and our power,” CUPE said in a statement.
Air Canada confirmed the tentative deal and began gradually resuming operations Tuesday evening, though full restoration of its network is expected to take at least a week due to displaced crews and aircraft.
If CUPE members vote against the agreement, a strike could resume.
Shares of Air Canada added 1.3% at about $19 late morning on Tuesday.