Air Canada labor deal may reshape pay for North American airline crews

A crippling strike by Air Canada flight attendants that grounded thousands of flights over wages and unpaid labor is the latest blow to the airline industry’s compensation system that does not fully pay cabin crews for their hours at work.

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The union, representing more than 10,000 Air Canada flight attendants, said on Tuesday they reached a tentative deal that ends unpaid work, without sharing further details. Analysts say any gains could influence upcoming contract negotiations in North America.

The deal could also drive up structural costs in a cyclical industry. Labor is airlines’ biggest operating expense after fuel.

The four-day strike that stranded more than 500,000 passengers mirrors unrest at US carriers, where flight attendants cannot walk off the job until the National Mediation Board grants permission. But cabin crews at American, Southwest, and Alaska Airlines last year rejected several contract deals, saying they did not address concerns about unpaid work.