AC and TRZ Agree to Terminate Arrangement

[FL-280]

Hmm. Didnt know First Air got a CBA forced down their throat...

[Hangry]

lol....exactly. He's got a cool avatar though, so there's at least that?

[indieadventurer]

You'd have to be pure evil to keep your employees laid off when the government is offering free money to pay their wages.

Not really, it's basic arithmetic. The subsidy has a cap at 8 hundred and change a week. If you bring back a union person that has a wage double or triple that amount, you have to pay them the union rate, so it's going to be very expensive to keep them on payroll as the subsidy only makes a partial dent in the wage. On the other hand, if you have a stack of employees that make that amount or less, then by all means, keep them off of the unemployment rolls. Ultimately it's the same money, from the same pot, just doled out thru company payroll instead of the UI system.

It isn’t a requirement of the plan (CEWS) to pay the employees full wages. It is encouraged though. And for most in our group, the CEWS will be greater then EI. So that would be a better position for the individual. As for union employees, the union can negotiate a MOA for a temporary reduction in pay, to amend their collective agreement.

+1

The government also just announced today they are waiving the employers requirement to pay EI and CPP contributions.

Have any employers provided reasoning to their effected employees as to why they aren't using the CEWS?

It's ruthless to not be keeping employees on when it beats EI by roughly $300/week and at such a minimal cost to the employer now.

[FL320]

Hopefully Transat will follow AC and Flair Airlines.

https://ca.travelpulse.com/news/airline ... -same.html

[FL-280]

Hopefully Transat will follow AC and Flair Airlines.

https://ca.travelpulse.com/news/airline ... -same.html

they won't....

[timeflies]

why not ?

[DanWEC]

I'm convinced you must have found a Transat pilot in bed with your girlfriend. Why your constant negativity and schadenfreude?

We sure don't wish harm on any other pilots.

[Localizer]

You said "essential service" ... You didn't say "take it in the ass".

[FL-280]

I'm convinced you must have found a Transat pilot in bed with your girlfriend. Why your constant negativity and schadenfreude?

We sure don't wish harm on any other pilots.

No not at all, i wish them the best of luck at AT. They wont because of the pay structure, the subsidy is only up to 58,700$ why would they call back senior captains? Thats my point

[Dry Guy]

It's more than the EI that they are currently collecting.

I get the impression the CEO of Transat just wants to wipe his hands of this with his big payday and could care less what happens to the employees or to the company as long the deal goes through. The way he speaks to the media about it seems like insincere overacting. On the inside I'm sure he's quite worried. Or he's in denial. I truly hope he rehires all the laid off employees with the assistance the government is offering like the other airlines have.

[indieadventurer]

I'm convinced you must have found a Transat pilot in bed with your girlfriend. Why your constant negativity and schadenfreude?

We sure don't wish harm on any other pilots.

No not at all, i wish them the best of luck at AT. They wont because of the pay structure, the subsidy is only up to 58,700$ why would they call back senior captains? Thats my point

That point doesn't make sense.

The government is paying and waiving employer EI/CPP contributions. A senior captain, a junior fo - makes no difference.

[FL-280]

Why arent they calling them then? Hmm.

[Jean-Luc Monette]

Why arent they calling them then? Hmm.

Could it be because the program hasn’t even been officially approved yet?

The article is in french, posted at 7:38 pm today on the journal’s website.

https://www.journaldemontreal.com/2020/ ... alariale-1

[FL-280]

Westjet just called everyone back? Things seem more complicated in la belle province...

[Chooch918Heavy]

Does anyone else find it a coincidence that companies who have stopped operations (SW, PD, TS) have not announced a thing about wage subsidy?

[Localizer]

I’m not sure what the “new relaxed” rules are exactly, but the previous rules stated the company had to be active. TSC, SWG, PTR are all effectively shut down so they wouldn’t qualify under the old rules (IMO) .. Maybe something has changed and they are looking at the program again. TSC (pilot) layoffs don’t take effect till the end of the month, so what’s the rush? Maybe ask friends at SWG what’s doing on .. they officially started layoff yesterday.

[Fanblade]

Excluding Porter on this. But SW and TS shutdown because there was no summer for them. Reasonably that means nothing until winter 2020-21 at the earliest, and that will be slow. So they shut down to preserve cash. Now just flicking the light switch on costs money. People expect they would spend restart capital, something in very short supply, just to lay people off in June?

I think the likelihood is the CEWS just doesn’t work for a company that is not spring loaded to return ASAP after quarantine rules begin to lift.

Now why Porter hasn’t? That doesn’t add up based on my rational. Unless of course they think their best strategy is to relaunch well into recovery versus ASAP. Delay relaunch until forward bookings begin to accumulate making relaunch less capital intensive.

Actually that is probably a good strategy. The risk of running out of cash during restart is a real threat.

[Dry Guy]

Excluding Porter on this. But SW and TS shutdown because there was no summer for them. Reasonably that means nothing until winter 2020-21 at the earliest, and that will be slow. So they shut down to preserve cash. Now just flicking the light switch on costs money. People expect they would spend restart capital, something in very short supply, just to lay people off in June?

I think the likelihood is the CEWS just doesn’t work for a company that is not spring loaded to return ASAP after quarantine rules begin to lift.

Now why Porter hasn’t? That doesn’t add up based on my rational. Unless of course they think their best strategy is to relaunch well into recovery versus ASAP. Delay relaunch until forward bookings begin to accumulate making relaunch less capital intensive.

Actually that is probably a good strategy. The risk of running out of cash during restart is a real threat.

A skeleton crew of HR could click a few buttons and direct deposit their CEWS in their accounts with virtually no cost to the company.

[Fanblade]

Excluding Porter on this. But SW and TS shutdown because there was no summer for them. Reasonably that means nothing until winter 2020-21 at the earliest, and that will be slow. So they shut down to preserve cash. Now just flicking the light switch on costs money. People expect they would spend restart capital, something in very short supply, just to lay people off in June?

I think the likelihood is the CEWS just doesn’t work for a company that is not spring loaded to return ASAP after quarantine rules begin to lift.

Now why Porter hasn’t? That doesn’t add up based on my rational. Unless of course they think their best strategy is to relaunch well into recovery versus ASAP. Delay relaunch until forward bookings begin to accumulate making relaunch less capital intensive.

Actually that is probably a good strategy. The risk of running out of cash during restart is a real threat.

A skeleton crew of HR could click a few buttons and direct deposit their CEWS in their accounts with virtually no cost to the company.

Clearly you say that without any consideration for the complexities behind your statement. It really isn’t that simple.

SW and TS are not some evil enterprises that simply don’t care about their employees. If they don’t apply for CEWS it means using their unique circumstances, they have sat down, run the math, and it doesn’t work.

This is all cart before the horse stuff anyway. We have no idea if TS, SW or PD might not re-evaluate and apply for CEWS.

My point was simply that CEWS might not work for them. That doesn’t make them bad employers. It means of all the crappy options in front of them CEWS doesn’t rise to the top.

[Dry Guy]

If they don’t apply for CEWS it means using their unique circumstances, they have sat down, run the math, and it doesn’t work.

What math? It's free money. The don't even need to make CPP/EI payments on it.