THEY STILL GOT THE $$$$
Canadian MPs unanimously condemn Air Canada for millions in executive bonuses
So far, the government has offered little indication of a further response to the airline's decision.
By Amanda Connolly
Global News
Posted June 3, 2021
Posted June 3, 2021
© THE CANADIAN PRESS/Mark Blinch
FILE: In June, Air Canada closed its stations in in Bathurst, N.B., and Wabush, N.L., and indefinitely suspended 14 routes in Atlantic Canada.
Members of Parliament from all parties voted unanimously on Thursday to condemn Air Canada for paying out millions of dollars in executive bonuses while negotiating a COVID-19 support package with the federal government, refusing to honour customer refunds and laying off thousands of staff.
Bloc Québécois MP Xavier Barsalou-Duval put forward the motion, which states “that this House condemn the decision of senior management of Air Canada to pay themselves $20 million in executive bonuses when they’re received $6 billion in public assistance."
Air Canada informed shareholders on Monday that its top executives and managers were getting a combined $10 million in stock options and bonuses for their response to the COVID-19 pandemic.
Prime Minister Justin Trudeau on Wednesday called that “unacceptable.”
The airline is facing heavy criticism over its decision to pay out $10 million in bonuses as well as special stock options to its executives despite spending the past year laying off roughly 25,000 workers and refusing to compensate Canadians for flights cancelled because of the pandemic.
Its board had initially approved $20 million in bonuses but paid out $10 million.
The payout late last year came as the airline was negotiating a federal support package after claiming it could not reimburse customers and had to hack away at regional flight routes out of financial difficulties.
Those bonuses also came as the airline was agreeing to federal assistance terms that stipulated it will have to limit executive compensation to $1 million while restricting dividends and share buybacks.
The government’s aid package for Air Canada included a $4-billion loan and $500 million in federal equity, plus a separate $1.4-billion loan to be used specifically to get the airline to refund customers.
Conservative transport critic Stephanie Kusie questioned the terms of the support package.
"The fact that the Liberal government agreed to a deal with these terms makes it clear that only Conservatives are fighting for the health of the airline sector," she said in a statement.
Barsalou-Duval on Wednesday called Air Canada "grifters" and Trudeau said he understands the "shock" Canadians are feeling at the airline's decision to reward executives.
“We all are waiting for Air Canada to explain itself," Trudeau said.
Finance Minister Chrystia Freeland said the government plans to voice its concerns about the airline.
She told reporters during a phone call on Wednesday that she’s disappointed some businesses receiving taxpayer-funded federal aid to survive the pandemic aren’t behaving as good corporate citizens.
So far, the government has offered little indication of a further response to the airline's decision.
Members of Parliament from all parties voted unanimously on Thursday to condemn Air Canada for paying out millions of dollars in executive bonuses while negotiating a COVID-19 support package with the federal government, refusing to honour customer refunds and laying off thousands of staff.
Bloc Québécois MP Xavier Barsalou-Duval put forward the motion, which states “that this House condemn the decision of senior management of Air Canada to pay themselves $20 million in executive bonuses when they’re received $6 billion in public assistance."
Air Canada informed shareholders on Monday that its top executives and managers were getting a combined $10 million in stock options and bonuses for their response to the COVID-19 pandemic.
Prime Minister Justin Trudeau on Wednesday called that “unacceptable.”
The airline is facing heavy criticism over its decision to pay out $10 million in bonuses as well as special stock options to its executives despite spending the past year laying off roughly 25,000 workers and refusing to compensate Canadians for flights cancelled because of the pandemic.
Its board had initially approved $20 million in bonuses but paid out $10 million.
The payout late last year came as the airline was negotiating a federal support package after claiming it could not reimburse customers and had to hack away at regional flight routes out of financial difficulties.
Those bonuses also came as the airline was agreeing to federal assistance terms that stipulated it will have to limit executive compensation to $1 million while restricting dividends and share buybacks.
The government’s aid package for Air Canada included a $4-billion loan and $500 million in federal equity, plus a separate $1.4-billion loan to be used specifically to get the airline to refund customers.
Conservative transport critic Stephanie Kusie questioned the terms of the support package.
"The fact that the Liberal government agreed to a deal with these terms makes it clear that only Conservatives are fighting for the health of the airline sector," she said in a statement.
Barsalou-Duval on Wednesday called Air Canada "grifters" and Trudeau said he understands the "shock" Canadians are feeling at the airline's decision to reward executives.
“We all are waiting for Air Canada to explain itself," Trudeau said.
Finance Minister Chrystia Freeland said the government plans to voice its concerns about the airline.
She told reporters during a phone call on Wednesday that she’s disappointed some businesses receiving taxpayer-funded federal aid to survive the pandemic aren’t behaving as good corporate citizens.
So far, the government has offered little indication of a further response to the airline's decision.
By Amanda Connolly
Global News
Posted June 2, 2021
Posted June 2, 2021
WATCH: During question period in the House of Commons on Wednesday, Prime Minister Justin Trudeau was asked about Air Canada paying out large bonuses to senior executives after receiving government funds to help the airline deal with losses incurred from the COVID-19 pandemic.
Prime Minister Justin Trudeau said it is “unacceptable” that Air Canada paid out some $10 million in bonuses to senior executives after laying off thousands of staff, refusing to grant customer refunds and negotiating a federal COVID-19 aid package that limited its ability to do exactly that.
The airline on Monday informed shareholders that its top executives and managers were getting millions in special stock options and bonuses for their response to the COVID-19 pandemic. But Air Canada spent the past year cutting regional air routes, slashing roughly 25,000 jobs and refusing to issue refunds to passengers whose flights were cancelled by COVID-19 travel restrictions.
A $5.9-billion federal support package made up largely of loans by the federal government limited executive compensation to $1 million while restricting dividends and share buybacks.
“We signed an agreement with Air Canada that among other things limited bonuses and share purchases of executives but even when they were negotiating those contracts with us, they were giving out huge bonuses to their senior officials,” Trudeau said in French during question period on Wednesday.
“That was unacceptable. I hope that Air Canada will explain their decision and their reasoning to Canadians who are shocked by the choices that Air Canada has made.”
Bloc Quebecois MP Xavier Barsalou-Duval called the airline’s executives “grifters” and pressed Trudeau for more information on what the government would do in response.
READ MORE: Air Canada paid $10M in COVID-19 bonuses to top execs while negotiating gov’t rescue plan
“I understand full well the … shock of Canadians with regards to this news that seniors executives at Air Canada have an explanation to give to Canadians,” Trudeau said, again in French.
TWEET THISCLICK TO SHARE QUOTE ON TWITTER: "WE ALL ARE WAITING FOR AIR CANADA TO EXPLAIN ITSELF."
Finance Minister Chrystia Freeland said the government plans to voice its concerns about the airline.
She told reporters during a phone call on Wednesday that she’s disappointed some businesses receiving taxpayer-funded federal aid to survive the pandemic aren’t behaving as good corporate citizens.
The government’s aid package for Air Canada included a $4-billion loan and $500 million in federal equity, plus a separate $1.4-billion loan to be used specifically to get the airline to refund customers.
–With files from The Canadian Press
Prime Minister Justin Trudeau said it is “unacceptable” that Air Canada paid out some $10 million in bonuses to senior executives after laying off thousands of staff, refusing to grant customer refunds and negotiating a federal COVID-19 aid package that limited its ability to do exactly that.
The airline on Monday informed shareholders that its top executives and managers were getting millions in special stock options and bonuses for their response to the COVID-19 pandemic. But Air Canada spent the past year cutting regional air routes, slashing roughly 25,000 jobs and refusing to issue refunds to passengers whose flights were cancelled by COVID-19 travel restrictions.
A $5.9-billion federal support package made up largely of loans by the federal government limited executive compensation to $1 million while restricting dividends and share buybacks.
“We signed an agreement with Air Canada that among other things limited bonuses and share purchases of executives but even when they were negotiating those contracts with us, they were giving out huge bonuses to their senior officials,” Trudeau said in French during question period on Wednesday.
“That was unacceptable. I hope that Air Canada will explain their decision and their reasoning to Canadians who are shocked by the choices that Air Canada has made.”
Bloc Quebecois MP Xavier Barsalou-Duval called the airline’s executives “grifters” and pressed Trudeau for more information on what the government would do in response.
READ MORE: Air Canada paid $10M in COVID-19 bonuses to top execs while negotiating gov’t rescue plan
“I understand full well the … shock of Canadians with regards to this news that seniors executives at Air Canada have an explanation to give to Canadians,” Trudeau said, again in French.
TWEET THISCLICK TO SHARE QUOTE ON TWITTER: "WE ALL ARE WAITING FOR AIR CANADA TO EXPLAIN ITSELF."
Finance Minister Chrystia Freeland said the government plans to voice its concerns about the airline.
She told reporters during a phone call on Wednesday that she’s disappointed some businesses receiving taxpayer-funded federal aid to survive the pandemic aren’t behaving as good corporate citizens.
The government’s aid package for Air Canada included a $4-billion loan and $500 million in federal equity, plus a separate $1.4-billion loan to be used specifically to get the airline to refund customers.
–With files from The Canadian Press
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