Originally Posted by
canadiancow
Is it 25%?
If I make $2000/week, the government will provide $847/week, and the employer still needs to pay the other $1153, right?
Or do I completely misunderstand how much this costs the employer?
The government will pay up to $847 per week per employee. The remaining portion is the responsibility of the employer so in actual fact it is only 75% for employees that make up to $1130 per week. For employees that make more the percentage top up is less. The method of calculating the subsidy is on the CRA website and it is done through the business account a company has with CRA. The other option available is the recently announced LEEFF which will provide bridge funding to large companies.
Despite all of this it is pretty clear AC needs to get smaller. As mentioned above, when they are doing very little flying, maintaining the entire work force would be a tremendous challenge. There is some indication that they are going to try and use voluntary work reduction and early retirement to get to a smaller workforce but it is hard to see how, with potentially over 100 aircraft retired (when you account for the A320 retirements), AC would maintain their present workforce. It is a terrible time for aviation.