Ottawa needs more data to investigate claims of unpaid work at airlines: minister

Employment Minister Patty Hajdu says her department needs more information from air carriers and unions to settle recent allegations of unpaid work in the airline sector.

On Thursday, the federal government published preliminary findings of an investigation launched six months ago into allegations made during collective bargaining between Air Canada and the union representing its flight attendants.

More than 10,000 Air Canada flight attendants went on strike in August 2025, disrupting the travel plans of thousands of passengers.

At the center of that labor dispute were claims by the Air Canada component of the Canadian Union of Public Employees that flight attendants were not being paid for certain work, such as ground duties.

Employers in federally regulated industries such as the airline sector must compensate employees at or above the limit set by the federal minimum wage.

Hajdu’s department said it found no evidence in the first phase of the investigation that compensation practices in the airline sector fell short of those standards.

But its report highlighted that compensation practices for many part-time and entry-level flight attendants need “closer examination.”

In an interview with The Canadian Press, Hajdu said federal investigators heard stories from union members of times when they were not fully compensated for delayed flights. He said those tales could not be fully verified by salary records.

“That doesn’t mean it’s not true. It just means the records don’t match up,” Hajdu said.

“We asked both unions and employers to provide more detailed, detailed data about pay. And we didn’t get enough information to really fully determine the validity of the argument either way.”

In a media statement, CUPE said it was disappointed that the investigation “concludes that the abuse of unpaid work by billion-dollar airlines is not a problem worth fixing.”

While the Air Canada labor dispute initiated the investigation, the investigation covers the entire Canadian airline sector.

Hajdu said investigators found one example at a small Northern airline “where it looked like people were being underpaid.” He said the unnamed employer is working with his department to fix that gap.

The report notes that compensation for flight attendants in most of the airline industry falls under a “credit-based model.”

Meeting with unions, airlines expected later this month

Instead of an hourly pay rate, the credit model calculates time spent in the air along with a per diem and other benefits that add up to a flight attendant’s total compensation.

Hajdu said while it remains to be seen whether the system is still working as intended, it is a model that most unions and airlines have agreed to during decades of collective bargaining in Canada.

The head of enforcement and compliance in Hajdu’s department is expected to gather airline and union representatives in Ottawa later this month for a meeting to review the minimum wage requirements in detail.

The federal government is also asking airlines to self-audit their salary records to ensure that all flight attendants are paid in accordance with the labor code.

Wesley Lesowski, president of CUPE’s airline division, said in a statement Thursday that Ottawa is taking “blind faith” in the airlines’ willingness to act responsibly.

Lesowski said, “If the airlines could be trusted to do the right thing, we wouldn’t be where we are today. But this is the only solution the government has offered so far.”

Hajdu said the federal government is taking a “collaborative” approach with unions and airlines, but is prepared to order records or impose fines if neither party lives up to its side of the bargain.

“If they don’t comply the next step is we will order them,” he said.

The Canadian Press contacted the airlines for comment on the initial investigation and asked whether they would comply with the self-audit. Most have not responded yet.

Christophe Henebele, Air Canada’s vice-president of corporate communications, said in an email that the airline welcomes the outcome of the federal government’s investigation and said it confirms “there is no unpaid work at Air Canada.”

“The findings confirm that the credit-based pay structure is consistent with the (Labor) Code, and the compensation structure for flight attendants in the airline industry meets the standards of the Code,” Henebele said.

Hennebelle said Air Canada will “participate fully” in future phases of the investigation.

Brad Cicero, director of communications and public affairs for Porter Airlines, also said in an email that the Toronto-based carrier takes Ottawa’s investigation as confirmation that the credit-based compensation system is “fair.” He said the airline would review the request for additional data “and determine how we can best support further review.”

Air Canada and the flight attendant union began an arbitration process last month to settle outstanding pay issues.

The temporary agreement ending the August strike would increase workers’ wages and establish a pay structure for time worked while planes are grounded.

Henebele said the contract offer “includes industry-leading provisions that specifically recognize and compensate ground duties,” which he said “directly addresses the misperception of unpaid labor among flight attendants.”

Union members overwhelmingly rejected that deal in a vote in September, but the parties reached agreement on other key parts of the contract and agreed not to initiate a work stoppage while the wage issue was resolved.

Lesowski warned that unpaid work will be a “central issue” as airlines including WestJet and Porter prepare to bargain with flight attendants this year. He chided the federal government for conducting multiple studies instead of taking action.

Hajdu said the federal government will be paying close attention to the outcome of those negotiations between Air Canada, the union and the Canada Industrial Relations Board (CIRB). He said he hopes clarity on wage requirements will lead to better relations between labor groups and employers in the region.

“I think the CIRB will help both the union and Air Canada determine appropriate arrangements for compensation through their discussions and we will watch very closely what the board’s decision is and how it unfolds,” Hajdu said.