Wed, April 24, 2024 at 9:35 AM EDT
Business
What a possible WestJet strike could mean for travellers
|
More than 1,000 WestJet pilots across Canada are preparing for the picket lines this month as a union claims the employees have been overworked and underpaid, while the airline argues they’re being fairly compensated.
The potential strike has thousands of travellers on edge amid what has already been a year of delays and flight cancellations from several Canadian airlines, including WestJet.
Complaints to the Canadian Transportation Agency have sky-rocketed recently, with more than 42,000 filed in the last year, nearly 2,000 of which involved WestJet in December alone. Many of the complaints came after passengers were denied compensation for cancelled flights due to a major snowstorm.
With the threat of a strike looming, president of the non-profit Air Passenger Rights organization Gabor Lukacs says the need for improved passenger protection rules has increased. He says a labour dispute should be considered a situation within the airline’s control, prompting questions about the strike’s impact and whether passengers will be compensated in the event of cancellations and delays.
“Ultimately, this is really troubling. It’s a wake-up call for Canadians that our system of passenger protection is inadequate,” Lukacs told CTVNews.ca in a phone interview on Tuesday.
WHY ARE WESTJET PILOTS THREATENING TO STRIKE?
On Monday, the union representing WestJet pilots, Air Line Pilots Association (ALPA), said in a news release that employees in Calgary, Vancouver and Toronto are calling for a pay increase and noting the airline’s high turnover rate.
The union says WestJet has been losing 30 pilots per month and on average, and that a pilot will seek different employment every 18 hours.
“It is well known that WestJet currently has a pilot attraction and retention problem. Those of us here today are fighting to change that,” ALPA president Capt. Jason Ambrosi said in a news release. “Our goal is to secure a contract that will help make this airline a career destination for pilots once again.”
Capt. Bernard Lewall, WestJet ALPA master executive council chair, recently told CTV News Channel that WestJet pilots are among the “lowest paid in North America, if not the world.”
For its part, WestJet released a statement on Monday saying the company “acknowledges the importance of our pilots, while at the same time secures WestJet’s financial future and avoids unnecessary disruption for Canadian travellers and communities.”
Additionally, the airline says its 737 pilots are among the “top Canadian income earners across all professions,” and the wages the ALPA is proposing could impact the airline’s ability to provide “affordable” air travel for Canadians.
ARE AIRLINES PILOTS ALLOWED TO GO ON STRIKE WHEN WOULD IT START?
According to the ALPA, WestJet pilots can go on strike as soon as May 16, as the union says the pilots are prepared to file a 72-hour strike notice on May 13 if negotiations continue to be stalled.
While it may be an inconvenience to passengers, Lukacs says the 1,800 pilots under the union are well within their constitutional right to strike if they deem it necessary.
“They have every legal right to strike and personally I do support the pilots in their bid to strike,” he said.
IF MY FLIGHT IS CANCELLED, WILL I GET COMPENSATION?
Tom Oommen, director general of communications at the Canadian Transportation Agency, says travellers have the right to be re-booked for another flight, regardless of carrier, within 48 hours if their flight is cancelled for reasons beyond the airline’s control.
“If a flight disruption is outside airline control, if the airline is not able to rebook a passenger within 48 hours of the original departure time, the airline must offer a refund to the passenger and this refund has to be paid to the passenger within 30 days,” Oommen told CTVNews.ca in a phone interview on Tuesday.
While this rule was recently introduced to the CTA’s Air Passenger Protection Regulations in September 2022, Lukacs says the APPR rules are not up to par with other airline passenger protection systems such as those in Europe, where travellers are entitled to additional compensation or coverage for expenses like meals and hotel accommodations in the event of a strike.
The CTA describes staffing issues as being considered within an airline’s control, suggesting a passenger might be entitled to some compensation, depending on when a flight is cancelled.
However, it specifically lists “a labour disruption within the carrier or within an essential service provider such as an airport or an air navigation service provider,” as being considered outside its control, suggesting passengers would not be compensated.
And when passengers do qualify, it’s limited to providing assistance, offering alternate travel arrangements or refunds, and up to $1,000 for inconveniences.
“In Canada you don’t get meals, you don’t get accommodation, you don’t get lump sum,” Lukacs said, despite his belief that this strike would be within the airline’s control.
Oommen recommends travellers stay up to date with the latest developments of the strike and keep note of the impacts to their travel as they unfold in case they wish to submit a complaint.
“If ever a passenger wishes to bring a complaint to the agency, that complaint would be based on the specific facts of the case and it’s important to keep good notes,” Oommen said.
WHAT COULD THIS MEAN FOR WESTJET?
Recently, Transport Minister Omar Alghabra proposed legislation that would increase penalties and place the responsibility on airlines to prove why they shouldn’t pay travellers compensation for disruptions beyond their control.
However, both the Air Passenger Rights organization and the Public Interest Advocacy Centre (PIAC) say the proposed amendment will only create more loopholes for airlines and wouldn’t help protect passenger rights.
“They’re creating a major loophole where the airlines can avoid compensation if they just sign in compliance agreements,” Lukacs said.
Both advocacy groups are calling for Canadians to support Bill C-327, which sets out to increase financial compensation for passengers experiencing delays, cancelled flights or denial of boarding not caused by “extraordinary circumstances.”
Lukacs said in the event of cancelled flights followed by a strike, it would come as no surprise if WestJet is hit with a class-action lawsuit if they refuse to compensate travellers.
“They could refuse to pay until they are being ordered to pay or being forced to pay, but will they be able to get away with it? I highly doubt it. It could even be grounds for class action and I would expect that in that case, there’s sufficient grounds to very heavily crack down on WestJet,” he said.
Continue Reading
Business
Oil Firms Doubtful Trans Mountain Pipeline Will Start Full Service by May 1st
|
Oil companies planning to ship crude on the expanded Trans Mountain pipeline in Canada are concerned that the project may not begin full service on May 1 but they would be nevertheless obligated to pay tolls from that date.
In a letter to the Canada Energy Regulator (CER), Suncor Energy and other shippers including BP and Marathon Petroleum have expressed doubts that Trans Mountain will start full service on May 1, as previously communicated, Reuters reports.
Trans Mountain Corporation, the government-owned entity that completed the pipeline construction, told Reuters in an email that line fill on the expanded pipeline would be completed in early May.
After a series of delays, cost overruns, and legal challenges, the expanded Trans Mountain oil pipeline will open for business on May 1, the company said early this month.
“The Commencement Date for commercial operation of the expanded system will be May 1, 2024. Trans Mountain anticipates providing service for all contracted volumes in the month of May,” Trans Mountain Corporation said in early April.
The expanded pipeline will triple the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia on the Pacific Coast.
The Federal Government of Canada bought the Trans Mountain Pipeline Expansion (TMX) from Kinder Morgan back in 2018, together with related pipeline and terminal assets. That cost the federal government $3.3 billion (C$4.5 billion) at the time. Since then, the costs for the expansion of the pipeline have quadrupled to nearly $23 billion (C$30.9 billion).
The expansion project has faced continuous delays over the years. In one of the latest roadblocks in December, the Canadian regulator denied a variance request from the project developer to move a small section of the pipeline due to challenging drilling conditions.
The company asked the regulator to reconsider its decision, and received on January 12 a conditional approval, avoiding what could have been another two-year delay to start-up.
Business
Tesla profits cut in half as demand falls
|
Tesla profits slump by more than a half
Tesla has announced its profits fell sharply in the first three months of the year to $1.13bn (£910m), compared with $2.51bn in 2023.
It caps a difficult period for the electric vehicle (EV) maker, which – faced with falling sales – has announced thousands of job cuts.
Boss Elon Musk remains bullish about its prospects, telling investors the launch of new models would be brought forward.
Its share price has risen but analysts say it continues to face significant challenges, including from lower-cost rivals.
The company has suffered from falling demand and competition from cheaper Chinese imports which has led its stock price to collapse by 43% over 2024.
Figures for the first quarter of 2024 revealed revenues of $21.3bn, down on analysts’ predictions of just over $22bn.
But the decision by Tesla to bring forward the launch of new models from the second half of 2025 boosted its shares by nearly 12.5% in after-hours trading.
It did not reveal pricing details for the new vehicles.
However Mr Musk made clear he also grander ambitions, touting Tesla’s AI credentials and plans for self-driving vehicles – even going as far as to say considering it to be just a car company was the “wrong framework.”
“If somebody doesn’t believe Tesla is going to solve autonomy I think they should not be an investor,” he said.
Such sentiments have been questioned by analysts though, with Deutsche Bank saying driverless cars face “technological, regulatory and operational challenges.”
Some investors have called for the company to instead focus on releasing a lower price, mass-market EV.
However, Tesla has already been on a charm offensive, trying to win over new customers by dropping its prices in a series of markets in the face of falling sales.
It also said its situation was not unique.
“Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs,” it said.
Despite plans to bring forward new models originally planned for next year the firm is cutting its workforce.
Tesla said it would lose 3,332 jobs in California and 2,688 positions in Texas, starting mid-June.
The cuts in Texas represent 12% of Tesla’s total workforce of almost 23,000 in the area where its gigafactory and headquarters are located.
However, Mr Musk sought to downplay the move.
“Tesla has now created over 30,000 manufacturing jobs in California!” he said in a post on his social media platform X, formerly Twitter, on Tuesday.
Another 285 jobs will be lost in New York.
Tesla’s total workforce stood at more than 140,000 late last year, up from around 100,000 at the end of 2021, according to the company’s filings with US regulators.
Musk’s salary
The car firm is also facing other issues, with a struggle over Mr Musk’s compensation still raging on.
On Wednesday, Tesla asked shareholders to vote for a proposal to accept Mr Musk’s compensation package – once valued at $56bn – which had been rejected by a Delaware judge.
The judge found Tesla’s directors had breached their fiduciary duty to the firm by awarding Mr Musk the pay-out.
Due to the fall in Tesla’s stock value, the compensation package is now estimated to be around $10bn less – but still greater than the GDP of many countries.
In addition, Tesla wants its shareholders to agree to the firm being moved from Delaware to Texas – which Mr Musk called for after the judge rejected his payday.
Business
Stock market today: Nasdaq futures pop, Tesla surges after earnings with more heavyweights on deck
|
Tech stocks rose on Wednesday, outstripping the broader market as investors welcomed Tesla’s (TSLA) cheaper car pledge and waited for the next rush of corporate earnings.
The Nasdaq Composite (^IXIC) rose roughly 0.6%, coming off a sharp closing gain. The S&P 500 (^GSPC) was up 0.2%, continuing a rebound from its longest losing streak of 2024, while the Dow Jones Industrial Average (^DJI) fell 0.1%.
Tesla shares jumped nearly 12% after the EV maker’s vow to speed up the launch of more affordable models eclipsed its quarterly earnings and revenue miss. That cheered up investors worried about growth amid a strategy shift to robotaxis and the planned cancellation of a cheaper model.
The results from the first “Magnificent Seven” to report have intensified the already high hopes for Big Tech earnings, that the megacaps can revive the rally in stocks they powered. The spotlight is now on Meta’s (META) report due after the market close, as the Facebook owner’s shares rose after the Senate voted for a potential ban on rival TikTok. Microsoft (MSFT) and Alphabet (GOOG) next up on Thursday.
Meanwhile, Boeing (BA) reported better than expected first quarter results before the opening bell with a loss per share of $1.13, narrower than the $1.72 estimated by Wall Street. Shares rose about 2% in morning trade.
Live6 updates
-
Health17 hours ago
Remnants of bird flu virus found in pasteurized milk, FDA says
-
Art23 hours ago
Mayor's youth advisory council seeks submissions for art gala – SooToday
-
Health21 hours ago
Bird flu virus found in grocery milk as officials say supply still safe
-
Art18 hours ago
Random: We’re In Awe of Metaphor: ReFantazio’s Box Art
-
News14 hours ago
Amid concerns over ‘collateral damage’ Trudeau, Freeland defend capital gains tax change
-
Investment22 hours ago
Taxes should not wag the tail of the investment dog, but that’s what Trudeau wants
-
News22 hours ago
Peel police chief met Sri Lankan officer a court says ‘participated’ in torture – Global News
-
Art23 hours ago
An exhibition with a cause: Montreal's 'Art by the Water' celebrates 15 years – CityNews Montreal