Air Canada Nears IAMAW Contract as Summer Disruption Fears Ease

Air Canada reached a tentative agreement with the International Association of Machinists and Aerospace Workers.

The deal covers more than 11,000 Air Canada employees based in Canada.

These workers support several important parts of the airline. They include maintenance, cabin services, airport airside operations, cargo, finance, and clerical teams. Their work helps keep aircraft ready, airport operations moving, cargo flowing, and internal airline processes organized.

The agreement is not final yet. IAMAW members still need to vote on the contract, and Air Canada’s board must also approve it. Until then, the airline has not released details about wages, benefits, contract length, or other terms.

The deal lowers the risk of travel disruption

The agreement covers workers who are closely linked to Air Canada’s daily operations. If these teams face a labour disruption, the impact can quickly spread across the airline’s network.

Maintenance delays can affect aircraft availability. Airside issues can slow airport operations. Cargo disruption can affect freight customers. Even a small operational problem can become larger during a busy travel period.

If the contract is approved, Air Canada will have more stability across key support teams. This would help the airline protect its schedule and give passengers, airports, travel sellers, and corporate travel buyers more confidence.

Negotiations followed months of labour talks

IAM began new contract talks with Air Canada in February 2026. The negotiations followed a previous 10-year agreement, making this an important bargaining round for both sides.

In April, Air Canada said IAMAW had requested conciliation. This is a formal step in Canada’s labour process that brings in government support when negotiations need help moving forward.

At that time, Air Canada said talks had been constructive, but wages and other key financial terms had not yet been fully discussed. The tentative deal shows that both sides have now reached enough common ground to take the contract to members for a vote.

Air Canada is trying to settle major labor files

The IAMAW agreement comes as Air Canada works to reduce labor uncertainty across the company. On June 12, the airline said customer service employees represented by Unifor had approved a new four-year agreement.

That Unifor deal covers about 6,000 employees in contact centres, customer relations, concierge services, airport terminal roles, and customer journey management. These teams are important because they help passengers when flights are delayed, cancelled, or changed.

The agreement also fits into a wider industry pattern where airline labour stability has become closely linked to operational reliability. Air Canada’s 2025 flight attendant strike caused more than 3,000 flight cancellations and created a major financial hit for the airline.

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