Air Canada lived with life support last year and ended its fiscal year with a net loss of $ 7 4.7 billion, but still paid a $ 10 million bonus to its senior management members, we just learned. The news was not detected as it was discovered in an information circular to its shareholders on Friday, which was not disclosed until the end of the day, but it was a scandal.
Air Canada is a Canadian company that has received significant financial assistance from the federal government to collect over 650 million in wage subsidies in whole or in part, in whole or in part, by collecting the salaries of employees who have held office. The pandemic, though almost ceased its activities.
The air carrier also benefited from the most generous financial assistance program granted to Canadian companies in financial difficulties when a $ 5.9 billion bailout was provided by the Ottawa Financing Corporation. Emergency response from businesses in Canada, mostly in the form of a repayable loan.
The federal government has been slow to approve the emergency program, although Air Canada’s international competitors have already received financial support from their governments.
As far as we know, the health crisis has greatly affected air transport and no one has disputed the ance of government financial assistance that Air Canada could benefit from.
Shoe Pinches, as they say, decided to award Air Canada’s board of directors a $ 10 million bonus to senior management members of the carrier for their good management and hard work. The work they performed during the crisis.
Prior to the outbreak, Air Canada’s executive bonus program would distribute approximately $ 45 million in additional compensation if certain financial goals were achieved.
The crisis led the board of directors to review its program by initially reducing its budget to $ 20 million and reaffirming its financial goals in operational performance. Finally, Air Canada directors reduced the endowment of its bonus program to $ 10 million.
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Unjustifiable bonus
Although the total executive compensation has been reduced from the previous year, it is problematic to increase the executive lice when a company is largely out of place due to the huge support from the federal government.
It becomes even more so when we are reminded that Air Canada has laid off 20,000 employees who are not eligible for the wage rebate, as they have no employment relationship with the carrier.
People with disabilities with the crisis had to resort to EI benefits for survival and many had to get new jobs in the hope that one day Air Canada would call them back to its service.
A high percentage of the airline’s 10,000 flight attendants were left to fend for themselves.
Our 10,000 members currently include 1000 to 1500 flight attendants. Leaders receive bonuses with money from the federal government while the rest are still sidelined. This is unethical. », Explained to me on Tuesday, in an impassioned tone, by Hugh Paulyot, Communication Manager at the Air Canada Flight Attendants Union.
For my part, I do not believe that Air Canada executives deserve to be rewarded for doing their job during a crisis. Their business is in danger, which is largely saved by financial assistance from the federal government, and they can expect a bonus for their contribution when their business is able to do so.
One year, Air Canada waits for thousands of passengers for reimbursement for flights they have never taken. The federal government had to grant the carrier $ 1.4 billion in debt to start repaying its affected customers.
The pandemic is tough and relentless for the aviation sector, but it does not approve of the increase in the salaries of those who have to practice their profession during a crisis.
Epidemic bonuses are appropriately justified for front line workers in the health sector, nurses and orderlies, management and security personnel, supermarket clerks and cashiers, workers laid on the cutting lines of pig slaughterhouses or Dollarama warehouse workers.
With all the financial assistance that the federal government has granted them – necessary and sustainable assistance, to protect our organization, Air Canada’s senior management members have already received adequate financial gratuity.
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