After the airline industry was grounded in the spring when governments around the world introduced COVID-19 lockdown measures, WestJet pilots were facing significant and immediate job losses.
In total, about 1,200 positions were on the chopping block, but those in the cockpit made the choice to take a hit on their paycheques instead, agreeing to a 50 per cent pay cut and reducing the number of job losses to 450.
The WestJet agreement is just one example of the tradeoff that many workers and companies face as the pandemic causes severe financial stress for many parts of the economy. Introducing pay cuts or reducing hours for workers and executives is one way to keep companies afloat until business picks up.
“Our pilot group has done what we can to help our company survive,” said Capt. Dave Colquhoun, the union chair representing pilots at WestJet and the company’s discount carrier Swoop.
“We balanced saving jobs versus how much of a pay cut our membership was willing to take,” said Colquhoun, a WestJet pilot himself.
Additional pilot positions at WestJet Encore, which are represented by a different union, were also lost.
Capt. Dave Colquhoun, chair of the union representing pilots at WestJet, said pay cuts were unfortunate, but a step the group was willing to take to help the company survive. (Kyle Bakx/CBC)
Economists say that for some workers, taking home a smaller paycheque is better than no paycheque at all, considering the current job market.
“We’ve seen it in a lot of different sectors,” said Charles St-Arnaud, chief economist with Alberta Central, the central banking facility for credit unions in the province.
“A lot of workers are making the decision that we’re probably better to take a pay cut than being unemployed and not being able to find work again, or not finding work for some time.”
Employers want to retain skilled workers
For employers, negotiating either reduced wages or hours can be one way of retaining employees, especially those with unique skills, training or certification.
“If you lay them off, how easy is it to re-hire?” said St-Arnaud. “You don’t want to lose your workers, as you would like to be ready to pounce and start making money again” if business improves.
That’s one reason behind many cuts to pay and hours in industries like the oil and gas sector, since many workers who leave that industry often don’t return.
CBC News has learned that the federal government is looking at subsidies for airlines to help rebuild some of the regional routes suspended when the COVID-19 pandemic hit the travel industry. 1:47
However, economists say the prevalence of pay cuts is difficult to quantify because there are so many other factors impacting the workforce during COVID-19.
For instance, average wages in the country were actually higher this summer compared to 2019 because many lower-wage jobs have been lost during the pandemic.
At WestJet, the pay cut was the result of reducing the minimum amount of hours guaranteed to pilots and the suspension of a program where the airline matched the amount of company shares pilots purchased, up to 20 per cent of their pay. An interim deal had been in place after WestJet was purchased by Onex in 2019, while the two sides negotiated a replacement program.
Airlines continue to lobby for aid package
“It’s a significant cut and may be the most significant cut in compensation across the industry in Canada,” according to Capt. Tim Perry, president of the Air Line Pilots Association (ALPA) Canada, which represents pilots at 15 airlines in the country.
“It’s absolutely drastic,” said Perry, who is also a WestJet pilot. “It’s hard to overstate the significance of something like that.”
He said about half of all the pilots he represents are either furloughed or facing imminent layoffs, and that those who have lost their jobs can have difficulty finding other work.
“We have members who are losing their homes, who are lucky to find a job driving a truck in many cases, or worse off than that,” Perry said. “It’s taken an enormous toll on people’s ability to cope and get by.”
The airline sector has lobbied the federal government for a financial aid package specific to the industry.
The federal government has rolled out several programs offering liquidity and loan guarantees, such as the large employer emergency financing facility (LEEFF) and the business credit availability program (BCAP), which are offered to a variety of sectors.
Prime Minister Justin Trudeau has not directly addressed a bailout of the beleaguered industry, but has said he plans to keep working with airlines hit hard by the pandemic.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
