WestJet Airlines Ltd. (TSX:WJA) has told its furloughed workers that their pay will be cut by half due to changes in the extended federal wage subsidy program, prompting the airline’s unions to call on Ottawa for more aid.
The maximum weekly payment for more than 3,200 WestJet employees on furlough who rely on the Canada Emergency Wage Subsidy (CEWS) will drop to $400 from $847, according to a WestJet memo.
Impacted flight attendants called on the federal government in Ottawa to clarify when and how much money will arrive in company coffers via the federal subsidy program in order to determine whether wages can return to current levels.
Effective September 27, the pay cut applies to all furloughed cabin crew, corporate employees and 700 airline pilots. The unions representing affected workers called on the federal government to come forward with targeted financial support for the aviation sector. The federal finance department has not commented on the request for support.
The WestJet memo came days after the Liberal government pledged to extend the wage subsidy into next summer. The program currently covers 75% of a worker's normal hourly wages, up to $847 per week. For airlines, the majority of employees remain furloughed or laid off as passenger levels remain below 10% of pre-pandemic levels.
Unlike WestJet, Air Canada (TSX:AC) opted not to administer the wage subsidy to most of its 38,000 employees, more than half of whom were laid off in June.
