The second-largest carrier in Canada, WestJet Airlines, has informed its employees receiving government wage subsidies that their pay could be reduced by 53% beginning September 27th. This is due to changes made by the Canadian government as it revamps the way it supports businesses during this global health crisis.
Canada’s Emergency Wage Subsidy
The bad news came via a company memo sent to airline employees (also known as ‘WestJetters‘) on Wednesday, September 23rd. This memo states that the maximum weekly payment for employees on the Canada Emergency Wage Subsidy (CEWS) will drop to C$400 per week, down from C$847. In US Dollars, this is a drop from $665 to $300.
According to Global News, WestJet vice-president Mark Porter notes that the change is due to the Canadian government aligning a newly extended wage subsidy with employment insurance. One form of government support is expanding while another, broader form of help is expiring. The latter is the Canada Emergency Response Benefit, which initially saw C$400 per week go to anyone who has “stopped working because of reasons related to COVID-19,” among other reasons.
However, some ambiguity still exists, and the company is waiting for details of the criteria for payment from the government.
WestJet employees and their union demanding clarity
WestJet flight attendants are demanding that the government clarify when and how much money will go to the company as part of employee wage subsidies. BusinessWire notes that a union representing 4,000 WestJet cabin crew members is demanding the same.
“The lack of direction from the government is causing risk for businesses and stress for individuals…WestJet can’t float our wages until Ottawa fills in the blanks, so our members are seeing their cheques cut in half.” -Chris Rauenbusch, President of CUPE 4070
Rauenbusch tells sources that WestJet employees have called him crying, stressed with the possibility that there may not be enough money to cover rent for the upcoming month. He adds that the government should “step up and support their words with action,” saying, “It is so frustrating to see the government touting CEWS while bureaucratic bumbling and ever-changing rules leave us wondering what to expect next.”
WestJet waiting for updated details
When contacted for a statement, a WestJet spokesperson responded with the following:
“While the aviation industry continues to grapple with the effects of the pandemic, WestJet continues to utilize the Canada Emergency Wage Subsidy (CEWS) and is awaiting updated details on the program. WestJet does not implement any changes to the administration of the CEWS program until such time as any changes are passed into legislation.”
The airline adds that air service is essential to Canadians and the nation’s economy, directly and indirectly employing 633,000 and contributing C$64 billion ($48.6 billion) to GDP. While the airline industry remains impacted by domestic and international travel restrictions, border closures, quarantine requirements, and testing limitations, Canada remains one of only a few countries that has not received specific aviation relief measures or support.
Do you think the Canadian government will respond to WestJet’s appeals in time? Let us know what you think of this situation by leaving a comment.
