AC to lay off half of workforce amid COVID crisis: internal memo
May 16, 2020, 9:45 pm
#32
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In reference to the discussions about how much it actually costs AC to keep an employee on with CEWS vs layoff, what are the minimum hours to be paid under the CBA for a flight attendant who isn't actually flying? What about a captain or FO?
With most of the fleet grounded, surely being paid minimums while not actually being called in is quite common among flight, cabin and airport workers.
For unionized full-time office workers, I agree that AC likely has no ability to unilaterally reduce pay other than layoff unless the unions come to the table to make a deal. Although from the worker's perspective, receiving the bare minimum from CEWS while still working full-time vs layoff and receiving CERB may not be so attractive. That's 40 hours a week for $350, or less than minimum wage.
With most of the fleet grounded, surely being paid minimums while not actually being called in is quite common among flight, cabin and airport workers.
For unionized full-time office workers, I agree that AC likely has no ability to unilaterally reduce pay other than layoff unless the unions come to the table to make a deal. Although from the worker's perspective, receiving the bare minimum from CEWS while still working full-time vs layoff and receiving CERB may not be so attractive. That's 40 hours a week for $350, or less than minimum wage.
Where a flight attendant may be at a disadvantage is they are probably taking home a combination of pay and per diem. The per diem is to cover meals and other expenses while away from the home and for that reason is tax free and does not count as income. Someone who is frugal may chose to eat at Tim Hortons and pocket the excess. If they are not flying they still have to buy food but don't have the per diem.
It has been a number of years since I was in a management role in a federally regulated industry. I don't believe there is a minimum wage in the federal labor code, instead I believe it say to apply the same minimum wage as the province of residency but I could be wrong.
May 16, 2020, 9:48 pm
#33
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Well the actual earnings would be $847/week, I'm just comparing it to the $500/week you can currently collect without working at all if you're laid off due to the pandemic. Normally, people don't have a choice of layoff or reduced pay, but AC employees may very well be facing that choice through their union.
May 18, 2020, 12:38 pm
#35
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The federal government giving air Canada money to keep people at home is not a reasonable use of tax payer money.
One thing we desperately need is to for AC and WS to start to interline. With cities like Saskatoon, Victoria, Halifax, Ottawa getting so few flights a day is insane how difficult it is to fly between two cities.
Any government support should be modest and come with strings attached. There needs to be path for the government to get its money back out when all is said and done.
Last edited by tcook052; May 18, 2020 at 2:07 pm Reason: Off topic
May 18, 2020, 3:05 pm
#36
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Weather it's CWES or EI, the employees are likely to end up on some form of government funding.
May 19, 2020, 11:41 am
#37
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Please note that a number of posts about the wider, lingering effects of COVID-19 on Air Canada beyond these layoffs have been moved to a better venue for continued discussions so please find those posts in this thread.
Regards,
tcook052
AC forum moderator
Regards,
tcook052
AC forum moderator
May 21, 2020, 12:53 pm
#38
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Air Canada to stop emergency wage subsidy; thousands of job cuts will leave workers out in the cold: union
Air Canada will not continue to use the federal emergency wage subsidy and has instead given employees the option of unpaid leaves, reduced work hours or resigning, the union representing the airline’s flight attendants said Thursday.
Air Canada will not continue to use the federal emergency wage subsidy and has instead given employees the option of unpaid leaves, reduced work hours or resigning, the union representing the airline’s flight attendants said Thursday.
May 21, 2020, 6:02 pm
#39
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don't ban me please
https://www.thebeaverton.com/2020/05/air-canada-ceo-claims-company-is-too-busy-firing-employees-to-refund-passengers/
Air Canada CEO claims company is too busy firing employees to refund passengers
The Beaverton spot-on, as usual
https://www.thebeaverton.com/2020/05/air-canada-ceo-claims-company-is-too-busy-firing-employees-to-refund-passengers/
Air Canada CEO claims company is too busy firing employees to refund passengers
The Beaverton spot-on, as usual
Jan 13, 2021, 8:56 am
#41
Join Date: Jan 2008
Posts: 3,946
Update: Air Canada announces 1,700 layoffs
Air Canada says it is reducing its first-quarter capacity by 25 per cent, a move that will mean the loss of about 1,700 jobs at the airline.
The Montreal-based carrier says the cuts will also affect more than 200 employees at its Express carriers.
Air Canada says with the cuts its capacity in the first quarter of 2021 will be about 20 per cent of what it operated in the first quarter of 2019.
Air Canada announces 1,700 layoffs, suspends more routes in Atlantic Canada - CityNews Toronto
Another article on Global News: (1) Air Canada to cut approximately 1,700 jobs | Globalnews.ca
The Montreal-based carrier says the cuts will also affect more than 200 employees at its Express carriers.
Air Canada says with the cuts its capacity in the first quarter of 2021 will be about 20 per cent of what it operated in the first quarter of 2019.
Air Canada announces 1,700 layoffs, suspends more routes in Atlantic Canada - CityNews Toronto
Another article on Global News: (1) Air Canada to cut approximately 1,700 jobs | Globalnews.ca
Jan 13, 2021, 9:48 am
#42
Join Date: Jul 2020
Posts: 366
Staff Surplus – February 2021
https://accomponent.ca/staff-surplus-february-2021/The Company advised us this morning of a staffing surplus due to a significantly reduced flying schedule related to a reduction in customer demand. The approximate surplus is 730 active mainline members and 100 active Rouge members. The staff reductions will take effect with the start of the February 2021 block month.
Jan 13, 2021, 10:20 am
#43
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AC News Release
Air Canada Implements Additional Capacity and Workforce Reductions
https://aircanada.mediaroom.com/Air-...rce-Reductions
Air Canada Implements Additional Capacity and Workforce Reductions
https://aircanada.mediaroom.com/Air-...rce-Reductions
Jan 18, 2021, 6:54 pm
#44
Join Date: Feb 2020
Posts: 1,203
Union: AC pocketing federal wage subsidy money instead of passing it to workers
https://www.businesswire.com/news/ho...ving-Thousands
The union representing 9,000 flight attendants at Air Canada says the airline is pocketing federal wage supports to pad their bottom line, and leaving thousands of its employees behind.
Jan 24, 2021, 4:40 pm
#45
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If I understand the article correctly , the union is upset that AC is not prepared to take a hit for ~ 60% of a non working (laid-off) employees salary. Given the uncertainty in the travel market and given that the government is hinting at trying to stop all travel in the short-term it seems to be a reasonable business decision to me. AC needs to preserve cash given the current situation. Yes I know, some of the methods they have chosen to use to preserve cash (no refunds) are questionable at best.
I am struggling with how an organization losing money hand over fist is "padding its bottom line" with a 35% wage subsidy. The reality of the situation is the flights are not profitable to operate right now. Without the subsidy I suspect that the route cancellations would have been more numerous.
Last edited by AltaBound; Jan 24, 2021 at 9:58 pm Reason: grammar correction