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More Air Canada, WestJet passengers baffled by reasons for denied compensation – Yahoo News Canada



Scott Aalgaard and his daughter Yuki at the airport. The two, along with Aalgaard's wife, were delayed by six hours when travelling from Toronto to Hartford, Conn. (Submitted by Scott Aalgaard - image credit)

Scott Aalgaard and his daughter Yuki at the airport. The two, along with Aalgaard’s wife, were delayed by six hours when travelling from Toronto to Hartford, Conn. (Submitted by Scott Aalgaard – image credit)

For Scott Aalgaard, it doesn’t add up.

On the morning of July 5, Air Canada informed Aalgaard by email his flight that day from Toronto to Hartford, Conn., had been delayed due to “an unforeseen maintenance issue.”

That afternoon, the reason had changed to either “staffing constraints” or “health and safety initiatives.”

Three days later, Air Canada informed Aalgaard he doesn’t qualify for compensation because his flight was cancelled (instead of delayed) due to a “labour dispute” that was outside the airline’s control.

Aalgaard, a Canadian from B.C. currently living in Middletown, Conn., says the new explanation makes no sense.

“There was no indication that there was any sort of labour dispute,” he said. “It feels to me like the company is throwing darts at a big poster on the wall, trying to pick out reasons and see what will stick.”

The recent travel chaos at some Canadian airports has led to a spate of flight delays and cancellations. And that has sparked a spate of complaints from passengers that some airlines are providing suspect reasons why they were denied compensation for flight disruptions.

Under federal regulations, airlines must compensate passengers up to $1,000 for flight delays of three hours or more.

Because Aalgaard’s flight was delayed by six hours, he, his wife and daughter, whom he was travelling with, would each get $700. However, airlines only have to pay up if the reason for the delay was within their control and not for safety reasons, such as unforeseen mechanical problems.

Aalgaard has filed for compensation with Air Canada despite its claim his flight isn’t eligible. If that doesn’t work out, he plans to file a complaint with the Canadian Transportation Agency (CTA).

“I don’t want Canada to be a place where big companies can just make up the story as they go along,” he said.

Air CanadaAir Canada

Air Canada

A demand for more details

Aalgaard’s not alone. Shortly after Canada launched its flight delay compensation rules in 2019, thousands of air passengers flooded the Canadian Transportation Agency with complaints they received inadequate reasons for denied compensation.

In November 2021, following a lengthy inquiry that involved all of Canada’s major airlines, the CTA announced it found no evidence the airlines “intentionally misled passengers.” However, the agency said much of the information provided to passengers explaining their flight delays “was inadequate, terse and unclear.”

As a result, the CTA clarified that airlines must explain in “sufficient detail” the reason for a flight delay.

Consumer advocate Tahira Dawood says passengers need that information to assess whether they should dispute their case.

“They cannot challenge [the airlines] if they have limited information, or they do not themselves understand what they’re hearing from the air carriers,” said Dawood, a lawyer with the Public Interest Advocacy Centre.



Connie DeMelo of Brantford, Ont., was upset when WestJet rejected her claim for compensation. DeMelo and her husband’s flight from Honolulu to Toronto on May 28 was delayed for almost six hours.

If the delay was caused by WestJet, DeMelo and her husband would each get $400. However, the airline told her in an email that the flight disruption “was outside WestJet’s control.”

WestJet provided no specific reason for the delay.

“They don’t want to take responsibility,” said DeMelo. “If they did give me a reason, I may pursue it even further. But at this point, I don’t know what I’m pursuing.”

Submitted by Connie DeMeloSubmitted by Connie DeMelo

Submitted by Connie DeMelo

Air Canada passenger Joshua Cohen received a more detailed explanation why his May 21 flight from Chicago to Toronto was cancelled, but he’s still dissatisfied.

Cohen was rebooked on a flight the following day. He said an Air Canada employee at the Chicago airport assured him the airline would cover his hotel and food costs for the night.

However, when Cohen submitted his expenses for $533.73 US, Air Canada responded by email that he wasn’t eligible for compensation. The airline said his flight cancellation was due to “unforeseen staffing issues” that arose due to the impact of COVID-19, and were outside the airline’s control.

He was offered instead a $100 flight voucher.

“That’s an absolute slap in the face,” said Cohen, who lives in Toronto. He argues staffing issues are within an airline’s control.

“They’re trying everything not to compensate their passengers and try and save some money. It’s just not acceptable.”

CTA says file a complaint

WestJet and Air Canada declined to comment on the specific cases in this story. Both airlines said they adhere to Canada’s Air Passenger Protection Regulations and that they’re currently operating in a challenging environment as the travel industry recovers.

The Canadian Transportation Agency said dissatisfied passengers can file a complaint, the outcome of which may help add clarity to the compensation regulations.

“An important part of our regime is the CTA making decisions on cases and airlines taking account of those decisions in their future actions,” said CTA spokesperson Tom Oomen.

WATCH | Missing baggage adds to travel chaos: 

This week, the CTA issued a decision in a compensation case, ordering WestJet to pay $1,000 to a passenger following a 21-hour flight delay.

According to the CTA’s decision, WestJet had previously told the passenger he wasn’t entitled to compensation because his original flight had been cancelled for safety reasons due to a crew shortage.

The CTA concluded that crew shortages are generally within the airline’s control and that WestJet “did not sufficiently establish” that the flight cancellation “was unavoidable despite proper planning.”

Cohen says he plans to file a complaint with the CTA, demanding compensation from Air Canada for both his expenses and $1,000 for a flight delay of more than nine hours.

Passenger DeMelo has already filed a CTA complaint.

They may have to wait a while for results. According to the agency, since Dec. 15, 2019, it has received more than 5,154 complaints on the issue, and 70 per cent (3,606) of them have yet to be resolved.

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Pandemic benefits were too generous with businesses, stringent with workers: experts – CP24 Toronto's Breaking News



Nojoud Al Mallees, The Canadian Press

Published Saturday, August 6, 2022 11:21AM EDT

Benefits rolled out at the onset of the COVID-19 pandemic allowed vulnerable Canadians to stay healthy while maintaining an income, but business supports were excessive and show the outsized influence of business groups on public policy, economists say.

Nearly two and a half years ago, the federal government faced an unprecedented task of shutting down the economy to slow the rapid spread of COVID-19. That shutdown led to a series of pandemic relief benefits aimed at softening the blow to workers and businesses, with the two most prominent programs being the Canada Emergency Response Benefit and the Canada Emergency Wage Subsidy.

Recent analysis from Statistics Canada based on census data shows two-thirds of Canadian adults received pandemic benefits in 2020, with these benefits cushioning income losses and reducing inequality.

Previous analysis from the federal statistics agency also found that, as was expected, usage of the wage subsidy program correlated with a lower probability of closure and fewer employee reductions.

While there was little time to spend on crafting the benefits and fine-tuning the details in March 2020, economists are now assessing the successes and failures of these programs in retrospect.

City of New York University economics professor Miles Corak, who has written analyses on these programs, says any evaluation needs to account for the uncertainty people and governments were facing at the time and the urgent need to keep people healthy.

That said, Corak said while the CERB was “terribly successful,” the Canada Emergency Wage Subsidy was a “huge failure.”

“The Canada Emergency Response Benefit got money out the door quickly in time to keep people at home, which is what we wanted to do to save lives,” he said.

On the other hand, Corak said the CEWS “came too late, it wasn’t well-targeted and dramatically over-insured (businesses).”

The CERB was quickly announced in March 2020 and $2,000 monthly to Canadians who lost income because of the pandemic shutdown. That was followed soon after by the CEWS, which subsidized businesses’ employee wages by 75 per cent in hopes of encouraging companies to hold on to their staff.

Corak says that by the time the wage subsidy was introduced, many businesses had already parted ways with their employees.

Another source of criticism for the wage subsidy program was that it subsidized wages for all workers at affected businesses, rather than simply those whose jobs were at risk of being lost, making it especially costly.

Jennifer Robson, an associate professor of political management at Carleton University, also pointed to the wage subsidy program as being unsuccessful. Robson said businesses that would have otherwise closed down for reasons unrelated to the pandemic remained artificially afloat because of the wage subsidy.

“These were not businesses that were going to return to profitability,” Robson said.

Statistics Canada data shows the number of business closures spiked dramatically in April 2020, but a sharp decline followed, bringing monthly closures to a lower level than pre-pandemic.

About 31,000 businesses closed in August 2020, while nearly 40,000 had closed in February 2020. 

In hindsight, Corak said the wage subsidy program should have been smaller in scope and targeted to larger businesses with specialized needs where it would be important for companies to hold on to the same employees, such as the airline sector.

The Canadian Federation of Independent Business has said the wage subsidy was “crucial” for small business owners and noted in April this year that only two of five of its members reported being back to normal sales.

Adrienne Vaupshas, the press secretary for Finance Minister Chrystia Freeland, said in a statement the focus of the government at the onset of the pandemic was to protect jobs and ensure a strong economic recovery.

“Today we have recovered 114 per cent of the jobs that were lost during the darkest months of the pandemic,” Vaupshas said.

In contrast to what some economists have characterized as excessively generous supports for businesses, some low-income Canadians have experienced clawbacks to social assistance benefits because they collected CERB. The Canada Revenue Agency is also hoping to recoup benefits paid out to over 400,000 Canadians whose eligibility was questioned.

In response, anti-poverty group Campaign 2000 has called for CERB amnesty.

Corak said while it’s reasonable to ask those who fraudulently collected benefits to pay them back, businesses should be held to the same standard.

“The concern I would have is the asymmetry in this response between individuals and businesses,” Corak said.

The CFIB has called for more loan forgiveness for small businesses who accessed loans through the Canada Emergency Business Account. The federal government is already offering partial loan forgiveness if repayments are made by the end of 2023.

Robson said when it comes to shaping public policy, business interest groups have well-resourced public relations teams to further their interests.

“There is nothing like that for individual low-wage workers,” said Robson.

Corak noted that at the start of the pandemic, there was a focus on the role of front-line workers, but with time, this shifted to small businesses.

“I think the small business lobby was very effective in informing individual MPs and putting pressure on cabinet and the government to respond in a way that many unseen and unheard mothers, fathers workers and families just didn’t have that same voice,” Corak said.

The danger of the wage subsidy program, Corak said, is that it sets a precedent for providing excessive subsidies to businesses and thereby stifling innovation.

“We’re almost moving towards a basic income for small business rather than a basic income for individuals,” he said.

This report by The Canadian Press was first published Aug. 6, 2022.

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'Head-scratcher:' Economists weigh in on Canada's surprise job loss – Yahoo Canada Finance





Canada’s July jobs reading caught economists by surprise with a loss of 30,600 positions rather than an expected gain of 15,000 for the month.

Despite the negative reading coming on the heels of a still larger decline in June, the unemployment rate stuck to its historic low of 4.9 per cent based, according to Statistics Canada, on a drop in Canada’s participation rate.

“Canada’s labour market is not in disarray,” said National Bank economists Kyle Dahms and Alexandra Ducharme, in their jobs commentary, noting that year-to-date, the private sector has added 110,000 positions. The pair said they continue to see “resilience in the Canadian economy” making them outliers among other big bank analysts.

After digesting July’s numbers, most economists appear to have taken away two narratives:

  • The Bank of Canada won’t be deterred from raising rates further, and possibly with another bigger than normal hike.

  • July’s jobs reading hints at an economy that is beginning to “lose steam.”

Here are the economists in their own words:

Rishi Sondhi, TD Economics

“That’s two in a row in terms of weak headline jobs prints, and employment has now averaged an 11k decline over the past three months. This is consistent with our view that economic growth will soften in the second half of the year. The details skewed to the softer end in July, as full-time employment accounted for a larger share of the overall jobs decline than in June, and hours worked also fell. The latter is particularly notable as it could signal a soft print for monthly GDP, following flat growth in May and a sub-trend gain in June (based on Statcan’s preliminary estimate).”

Stephen Brown, Capital Economics

“The second consecutive monthly decline in employment will raise a few eyebrows at the Bank of Canada but, with the unemployment rate unchanged at a record low and wage growth still strong, we doubt it will prevent the Bank from hiking its policy rate by a further 100 bp at the next two meetings…. While the increase in average hourly earnings was a little lower than we expected, at 0.4% m/m, that gain is still too high for comfort in terms of meeting the Bank’s 2% CPI inflation target. At the margin, the July LFS may tilt the odds a bit toward a 50 bp rate hike in September rather than a 75 bp one, but we doubt it will be the deciding factor.”

Andrew Grantham, CIBC Economics

“The Canadian employment figures were somewhat of a head-scratcher again in July, with employment falling for a second consecutive month but the unemployment rate remaining historically low. The 31K decline in jobs came against consensus expectations for a 15K gain, and added to the 43K decline in the prior month. However, a two-tick decline in the participation rate meant that the jobless rate remained at 4.9%. Job losses were strangely concentrated in the services sector, including wholesale & retail, education and health. With some of those sectors reporting high vacancy rates, labour supply rather than demand appears to be the main issue. That said, the major difference between today’s report and last month’s is that wage growth unexpectedly decelerated (to 5.4% y/y from 5.6% and against consensus expectations for 5.9%) although we always caution that the LFS wage series is extremely volatile month/month. While today’s figures muddy the waters further for policymakers, the Bank of Canada will likely focus on the historic low unemployment rate and still strong wage growth to justify another non-standard rate hike at its next meeting.”

Carrie Freeston, RBC Economics

“In the months ahead we will begin to see the economy lose steam. We are already observing jobless claims rising South of the border, as U.S. labour demand begins to cool. Canada will not be far behind. With the Bank of Canada having raised the overnight rate by 225 basis points (to 2.5%) since March, and at least another 75 basis points slated for the fall, inflation pressures will ease. And labour markets are expected to cool. Our forecast calls for the unemployment rate to begin to trend higher in the coming months and into 2023.”

Douglas Porter, BMO Economics

“Canada’s job market is clearly losing momentum in a hurry, likely due to both a marked cooling in the broader economy but also because a lack of available workers. The downward drift in the participation rate, especially for the 15-64 group, is worth watching closely, with the potential to tighten the labour market further. For the Bank of Canada, the takeaway will be that while growth is clearly cooling, conditions remain drum-tight and wages are stirring. We believe this backdrop is consistent with another rate hike at the September meeting, but of a less aggressive nature than the mega 100 bp move in July. We look for a 50 bp hike at that time.”

Marc Desormeaux, Desjardins Economics

“July’s data were well below the consensus projections, and as such shaved our call for Q3-2022 real Canadian GDP growth to just below 1% (q/q saar). Decelerating wage gains suggest that some progress has been made in the fight against inflation, but the rate of hourly earnings growth continues to track prices closely. Accordingly, while we think inflation may have peaked and have noted previously that the Canadian economy is historically sensitive to interest rate increases, we believe the Bank of Canada will put more weight on the extremely tight labour market and raise rates by 50 bps at its September meeting.”

Kyle Dahms/Alexandra Ducharme, National Bank Economics

Canada lost 31K jobs in July, a second consecutive monthly decline. Despite this development, Canada’s labour market is not in disarray. July’s losses were concentrated in public sector jobs. This sector indeed suffered its worst loss outside of a the pandemic since 1976 (-51K), a perplexing development considering the state of public finances at both the federal and provincial levels. Private sector employment, while also down in July, is still up 110K year-to-date with continued contribution from construction and manufacturing during the month. Despite the July decline, the unemployment rate remained unchanged at its lowest level since 1970 due to a 0.2 pp drop in the participation rate, a third decline in four months. With the unemployment rate remaining historically low, we still see resilience in the Canadian domestic economy. This robustness is also confirmed by the evolution of the wages of permanent employees, which grew 5.4% over the last twelve months, down from June’s 5.6% print but still historically high. At this juncture, the Bank of Canada is still on track to hike at its next meeting on the 7th of September with labour shortages continuing to persist according to the latest figures by the CFIB (Canadian Federation of Independent Business).

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Diesel, Home Heating Fuels Down in Unexpected Price Adjustment – VOCM



The price of diesel and home heating fuels has dropped significantly in an unexpected adjustment this morning.

Diesel is decreasing by 9.0 cents per litre, while furnace and stove oils are down 7.76 cents on the island, Stove oil in Labrador is down by 6.12 cents.

There is no change in the price of gas.

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