Air Canada CEO Defends 38% Pay Offer As Union Rejects Federal Order

Air Canada CEO Mike Rousseau defended the airline’s proposed 38% pay hike for striking flight attendants on Monday but admitted there remains a large gap with the union’s demands and gave no plan to resume talks, according to Reuters. Rousseau spoke after the union rejected a federal order to end its strike. The defiance created a three-way standoff with the government and has disrupted travel for hundreds of thousands. Union president Mark Hancock said he would risk jail rather than end the strike without a deal on higher wages and pay for ground duties. The Canadian Union of Public Employees vowed to continue the strike until Air Canada negotiates on wages and unpaid work, despite the labor board declaring it unlawful. The third day of a strike by over 10,000 flight attendants stranded passengers and forced Air Canada to suspend its 2025 guidance, pushing shares down nearly 3%. The airline also reported lower profit from reduced U.S. bookings.