WestJet ramping up after reaching deal with pilots, but not before cancelling flights | Canada News Media
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WestJet ramping up after reaching deal with pilots, but not before cancelling flights

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WestJet continued to ramp up operations on Friday in an effort to restore the long weekend travel plans of thousands of passengers upended by flight cancellations before the airline reached a last-minute deal with its pilots.

Travellers stuck at airports expressed frustration with cancellations and delays, while others took to social media with stories of ruined vacations.

WestJet warned that the full resumption of operations will take time, and encouraged travellers to check the status of their flight before heading to the airport.

WestJet and the Air Line Pilots Association announced a tentative deal to avoid the job action early Friday morning after eight months of negotiations.

Bernard Lewall, head of the Air Line Pilots Association’s WestJet contingent, said the union achieved its main goals: better pay, job security and work-life balance.

“We did receive significant wage increases,” he said in an interview. “We’ve secured our futures through job protection … and we’ve had improvements to our work-life balance.”

Aviation expert John Gradek called it a “landmark agreement,” saying it will set the standard for labour negotiations going forward.

“What you’re seeing is a tectonic shift starting to appear in terms of the way in which union and management labour relations are going to evolve in Canadian aviation,” said Gradek, a former Air Canada executive and head of McGill University’s aviation management program.

The union will likely apply the same approach in bargaining with other airlines, he said.

“The pilot wage rate in Canada is going to go up, there’s no doubt about it,” Gradek added.

But he said pilot wages rising likely won’t lead to higher prices for consumers, because of competition from ultra low-cost carriers.

While the tentative agreement avoided a strike, many travellers were still confronted by cancelled flights and foiled holiday plans.

WestJet cancelled 231 flights from Thursday through Saturday, topping the global list two days in a row, according to flight tracking service FlightAware.

The shutdown affected dozens of routes within Canada and to the U.S. and overseas, while flights at the WestJet Encore regional service and the WestJet-owned Sunwing Airlines were unaffected.

At Toronto’s Pearson Airport, WestJet travellers described cancelled and delayed flights, mainly to Central and Western Canada.

Tommy Gilligan was set to be on flight to Calgary early Friday for a family wedding and holiday in Banff, Alta.

“They told us at 4:30 in the morning that it was going to be delayed, and now they just cancelled it,” the 65-year-old from Burlington, Ont., said.

“My wife pulled some strings and we’re on a six o’clock flight tonight. I’m not happy right now — my whole family’s waiting for us.”

The strike-related scheduling chaos with Canada’s second-largest airline is “ totally ridiculous” and “not one bit fair to us,” Gilligan said. “I don’t think I’ll use WestJet after this weekend.”

Other travellers shared his frustration with the airline’s handling of the situation, while also expressing support for the pilots.

Diran Adenugba, 44, was at the airport for a flight home to Saskatoon, the final leg in his return journey from Atlanta. His original flight was scheduled to leave Thursday evening, but was cancelled after WestJet grounded planes ahead of the strike deadline.

“I was rescheduled to fly out this morning at 9 a.m.,” Adenugba said. “I got here to find out that flight was cancelled yet again.”

He was rebooked on an afternoon flight to Saskatoon via Winnipeg, and said he has his fingers crossed he will get out of Toronto on Friday.

Still, despite the inconveniences, Adenugba remained sympathetic to the grievances of pilots.

“I’m not a pilot,” he said. “But if I were in their shoes, I’d want my demands to be met.”

Travellers will likely blame the labour dispute and ensuing flight disruptions on WestJet, not the pilots, Gradek said.

The airline “was concerned about the value of the brand and their market share,” he said. “WestJet basically said, ‘Let’s cut our losses.'”

Still, the bill for hundreds of cancelled and delayed flights will be “in the millions” for WestJet, Gradek said.

WestJet CEO Alexis von Hoensbroech said the agreement with the pilots provided “meaningful improvements to job security and scope, working conditions and wages.”

“We appreciate we were able to arrive at a deal, however, recognize the impact on our guests and we sincerely appreciate their patience during this time,” he said.

Meanwhile, Lewall with the union said the deal involves both financial and lifestyle gains for pilots.

The latter includes the ability for pilots to reschedule, trade or drop so-called deadheads — when an airline requires a pilot to commute to a different airport than where they live to start their duty.

The union also secured the right to find a pension for the pilots, he said.

“We’re pretty excited about the whole package,” Lewall said, noting that the contract will help solve many of WestJet’s pilot attraction and retention issues.

The deal will be developed into a tentative agreement over the coming days, with a roughly one-week voting period to follow shortly thereafter, he said.

“Even though it was a very contentious time, last night after the agreement we all got together, shook hands and had a drink together,” Lewall said. “The interactions with the company were always very professional, and never heated, so I’ve got to tip my hat to the company.”

 

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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