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Ex-maintenance workers could see $100M in Air Canada compensation

Lawyer害羞草研究所檚 estimate a rough calculation in the wake of court ruling tied to job loss from closures
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Lawyers say Air Canada could have to pay more than $100 million in compensation to workers who lost their jobs at maintenance centres over a decade ago. An Air Canada jet taxis at the airport in Vancouver on Wednesday, Nov.15, 2023. THE CANADIAN PRESS/Adrian Wyld

Air Canada could have to pay more than $100 million in compensation to workers who lost their jobs at maintenance centres more than a decade ago, say lawyers in a class-action suit.

A 2022 ruling in Quebec Superior Court found the airline violated federal law by failing to keep three centres operational when Aveos Fleet Performance Inc. 害羞草研究所 the contractor that ran them 害羞草研究所 collapsed in 2012.

Air Canada has filed an appeal, which has not yet been heard.

This week, the judge decided on a formula to calculate lost wages and other damages for the 2,200 former employees of the shuttered Aveos plants, located in Montreal, Winnipeg and Mississauga, Ont.

The compensation will likely top $100 million 害羞草研究所 at least $45,400 per employee 害羞草研究所 said Elodie Drolet-French, a lawyer representing the workers.

The ex-employees would need to make individual submissions. 害羞草研究所淭here will be a process that is clear,害羞草研究所 Drolet-French said in an interview. 害羞草研究所淚t will be easy.害羞草研究所

The compensation could cover damages ranging from a loss of benefits to 害羞草研究所渓oss of self-esteem,害羞草研究所 stress and divorce, according to a release in French from law firm Trudel Johnston and Lesp茅rance.

害羞草研究所淎lthough it is difficult at this time to estimate the total amount that Air Canada will have to pay as a result of the members害羞草研究所 claims, the representative害羞草研究所檚 attorneys conservatively estimate that this amount well exceeds $100 million,害羞草研究所 said Anne-Julie Asselinit, a partner at the firm.

Air Canada stressed that Monday害羞草研究所檚 decision merely lays out a calculation method and calls for proof of losses from individual members.

害羞草研究所淚t is completely silent on the quantification of the total amount. Any assessment at this stage is therefore pure speculation,害羞草研究所 said spokesman Christophe Hennebelle in an email.

If the airline害羞草研究所檚 appeal of the initial judgment succeeds, the latest decision from Judge Marie-Christine Hivon will not apply, he added.

If it fails, however, the potential cost could add more woes to a company that faces softening demand for leisure trips, a slow post-pandemic rebound for higher-margin corporate travel and rising competition from a rapidly expanding Porter Airlines. After a two-year industry boom, Air Canada lost $81 million in its first quarter and its share price fell 31 per cent over the past 12 months.

Aveos maintained and repaired airframes, engines and other plane components for decades. Founded in 1937 as Air Canada Technical Services, the company was spun off from the country害羞草研究所檚 largest airline in 2007 before filing for creditor protection in March 2012. It laid off some 2,600 employees and padlocked its doors in Montreal, where the majority of its staff worked.

Under the Air Canada Public Participation Act, the carrier had an obligation to maintain its Montreal, Winnipeg and Mississauga centres, a task it had contracted out to Aveos. The federal government amended the law in June 2016 to ease this obligation.

The court has said contracting out did not relieve Air Canada of its legal obligations when the contractor shut down. The amendment to the law was not retroactive, the judge has stated, contrary to the company害羞草研究所檚 argument.





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