CUPE Requests Cancellation of Mediation

• Wage portion of the agreement will head directly to arbitration
• All other items, including ground pay, already in force
• No labour disruption can be initiated, and flights will continue to operate as normal

MONTRÉAL, Sept. 16, 2025 /CNW/ - Air Canada and the Canadian Union of Public Employees (CUPE) reached a four-year tentative agreement for its flight attendants in August. This agreement, which was not ratified by the flight attendants, was achieved without concessions from the union and included improvements to wages, pensions and benefits, while also including a mutually agreed-to modernization of compensation for work performed on the ground. Details about the agreement can be found here.

In contemplating the potential outcome of not ratifying the tentative agreement, the parties mutually agreed that the wage portion would be referred to mediation and, if no agreement was reached at that stage, it would continue to the arbitration process previously ordered by the Canada Industrial Relations Board. The parties also agreed that no labour disruption could be initiated, and therefore flights will continue to operate as normal.

On Friday, September 12, 2025, CUPE asked to dispense with the mediation process and have the wage component proceed directly to arbitration.

While remaining committed to the entirety of the process, Air Canada, in a spirit of cooperation, has agreed to CUPE's request. This will provide cabin crew with wage increases and their retro pay, dating back to April 2025, as soon as possible.

About Air Canada

Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations worldwide, with a wide selection of hotels, flights, cruises, day tours, and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger and freighter aircraft. Air Canada's climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. For additional information, please see Air Canada's TCFD disclosure. Air Canada shares are publicly traded on the TSX in Canada and the OTCQX in the US.

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