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WestJet passengers concerned about price gouging but here’s what you should do

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Burnaby, B.C., resident Joe Gilchrist said it’s hot in Puerto Vallarta, Mexico, but he knows there could be worst places to be “stuck” for a few days.

Gilchrist travelled with his partner to the sun destination on WestJet last week. But with tickets to fly home on Friday, Gilchrist said he is now unsure if they can, due to the possibility of a WestJet pilot’s strike starting at 2 a.m. PT the same day.

He told Global News the possibility of an upcoming pilot’s strike has been on his mind for most of his trip so he decided to see what his other options to buy a ticket might be.

“I always like to have a backup plan and I was looking online and so many of the prices were inflated,” he said. “I couldn’t believe Air Canada was charging $1,500 for a one-way ticket when our flight was only $600 return.”

“I feel it’s really unfair for a lot of the Canadian consumers, especially for people who have to come home,” Gilchrist said.

In a statement, Air Canada said its fleet is already fully deployed so the company has minimal ability to increase capacity further.

“However our staff are aware of the situation and prepared to assist. We are monitoring ticket prices to avoid automated spikes due to any surge in demand, however, given the prior high seasonal demand, the lowest-fare seats are in many cases already sold out,” Air Canada said.

“We will attempt to accommodate customers looking for new bookings with our remaining available seats when possible, but it is to be expected that demand will exceed capacity,” Air Canada continued. “Travellers seeking to fly on Air Canada should book through www.aircanada.com, as wait times to reach our Contact Centres are elevated. Those travellers with an existing WestJet booking should contact WestJet.”

WestJet pilots on Monday issued a 72-hour strike notice to the airline’s management and the federal government, starting a final countdown for walkouts as contract talks drag on.

Pilots are now poised to begin strike action at 5 a.m. ET (2 a.m. PT) on Friday unless a deal is reached, the union said.

The union warned job action could include grounding all WestJet-owned aircraft and “effectively shutting down operations.”

Gabor Lukacs, president of Air Passenger Rights, said if a traveller’s flight is cancelled due to a strike, the current laws in Canada classify that as being out of the carrier’s control.

“Which is somewhat surprising, if not absurd, given that WestJet may itself be locking out its employees,” he said.

Lukacs explained that to be correctly compensated, WestJet must either cancel the passenger’s flight or if the strike goes ahead, it is assumed the flight can’t take place. Then, the passenger must give WestJet some time to rebook the passenger on the next available flight in the next 48 hours. In the event of a strike, Lukacs said, and WestJet flights are not available, WestJet must purchase a ticket for the passenger on a competitor’s airline.

“If WestJet is refusing to do so, or they’re not reachable, then, rightfully concluded, they are not fulfilling their end of the bargain, you can go and buy a ticket yourself and then make WestJet pay for the expenses,” Lukacs explained.

When it comes to inflated pricing, however, Lukacs said it’s a free market and airlines can choose to ask for as much as a passenger is willing to pay.

“Airlines are free to add as much capacity as they see fit and airlines will charge whatever is appropriate for the circumstances,” he said.

He said in this situation, however, it will eventually be WestJet footing the bill as the airline has the obligation to pay passengers for their tickets on other airlines if WestJet was given the chance to rebook the passengers.

In a statement, Flair Airlines said it has added flights between Vancouver, Calgary and Edmonton over the holiday long weekend.

“Our teams are monitoring developments and are developing contingency plans should a strike action take place. Flair Airlines seats are put out for sale several months before the flights depart. That’s normally when the lowest fares are available — which are the lowest on offer in Canada. As the travel date approaches for any flight, fares increase — and sometimes decrease — according to customer demand, on a flight-by-flight, seat-by-seat basis. Our flights are increasingly full, particularly as Canadians begin to embark on their summer travels,” the company said.

Talks between WestJet and the union are continuing at a hotel in Toronto.

In an interview Wednesday, WestJet CEO Alexis von Hoensbroech said the company has made a “very reasonable but also very generous offer” to the pilots.

“Which is basically raising their wages by a double-digit percentage and also addressing a lot of the concerns that they have. So overall, the entire negotiations are around scope, so job security basically. It’s around working conditions and it’s around wages,” he said.

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However, the two sides remain apart.

“Pilots’ expectations are pretty high,” von Hoensbroech added. “Canadian pilots are comparing themselves to their U.S. peers. And in the U.S., current pilot contracts pay double what is being paid in Canada.”

According to von Hoensbroech, the higher U.S. pay is due in part to the exchange rate and the U.S. being a different market. He said the pilots have publicly said they would like to close this pay gap. But he said that to close a pay gap that is basically double would be too big a jump. “That’s not a reasonable expectation that one can have.”

But Tim Perry, the Air Line Pilots Association’s national president, which represents the pilots, told Global News on Tuesday that he would not say what the current range of salaries for WestJet pilots is under the old collective agreement, or give an idea of what salaries were offered to other pilots under the airline’s most recent offer.

Gilchrist, who is enjoying the last days of his vacation, said he is trying not to worry too much.

“Definitely have a plan B, but if you’re stuck somewhere beautiful like this, don’t fret it. Don’t waste your time on hold for hours with the airline,” he said. “Go home and submit all your receipts and eventually, through your travel insurance and the airline, they should reimburse you.”

 

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Canada Goose to get into eyewear through deal with Marchon

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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.

Companies in this story: (TSX:GOOS)

The Canadian Press. All rights reserved.

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A timeline of events in the bread price-fixing scandal

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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)

The Canadian Press. All rights reserved.

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TD CEO to retire next year, takes responsibility for money laundering failures

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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.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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