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 Canada Emergency Wage Subsidy.


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This has a secondary benefit for the company.  When the time comes that a recall is in order all they need do is call you and tell you to come back to work tomorrow.  if you are laid off an collecting EI there is paperwork to do and government rteporting requirements that delay the return to work process.

The companies that do this will get their work force back in action much quicker.

 

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On 4/10/2020 at 1:14 PM, mo32a said:

Does this money have to be repaid at some point?

Probably not. Canada like the US and others will simply, metaphorically speaking, simply print more money. What will happen IMHO, is that we will have high rates if inflation after we come out of all of this.

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42 minutes ago, GDR said:

Probably not. Canada like the US and others will simply, metaphorically speaking, simply print more money. What will happen IMHO, is that we will have high rates if inflation after we come out of all of this.

It's a delicate balancing act...

The Canadian Household debt to income ratio is 176%. That is extremely high compared to most countries. World Debt/Income Data If that ratio wasn't so high, inflation could be used to reduce the debt load. The issue faced when the general population is under such a debt burden is that any increase in the lending rates is likely to result into an increase of debt default and a correction of any asset whose value inflated because of low rates.

The central bank doesn't have much margin left.

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I think it will be out of their hands. The only hope is that with inflation wages go up enough to cover the increase in interest on their mortgages. Of course if house prices drop, and there is a lot of room for that, we will wind up with people underwater on their mortgages. I just hope our economists can bring this in to a happy landing but I'm not that confident.

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50 minutes ago, GDR said:

I just hope our economists can bring this in to a happy landing

The economists are not in charge.

1. An actor for a PM

2. A journalist for deputy pm

3.  A graphic artist for a Health minister

and more

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8 hours ago, Fido said:

The economists are not in charge.

1. An actor for a PM

2. A journalist for deputy pm

3.  A graphic artist for a Health minister

and more

With all the important jobs taken, there's no room for a Reality-TV host...

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Porter Airlines accessing Canada's federal wage subsidy program Français

 
Porter Airlines (CNW Group/Porter Airlines)

NEWS PROVIDED BY

Porter Airlines 

Apr 17, 2020, 13:30 ET

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TORONTO, April 17, 2020 /CNW/ - Porter Airlines intends to access the federal government's Canada Emergency Wage Subsidy (CEWS) to return hundreds of its team members to payroll.

The airline temporarily suspended all flights on March 21, to support the public health response to COVID-19, and as travel restrictions and personal movement limitations were increasing. The majority of Porter's 1,500 team members received temporary layoff notices at that time, with a small group maintaining business continuity.

"Our team is showing outstanding dedication during a time when most are unable to work," said Michael Deluce, president and CEO, Porter Airlines. "As we look ahead to restarting flights when it is appropriate to do so, we are doing everything possible to stay connected with our people. The ability to use CEWS is one way of doing this. We appreciate the federal government's support in this regard."

CEWS provides a 75% wage subsidy (capped at $58,700 annually) to eligible employers for a limited period. This equates to a maximum benefit of $847 per week, before source deductions.

"We have taken time to understand how CEWS works in practice and ensure that our team members have an option to choose what government income support program works best for them today and in the future," added Deluce.

Porter intends to welcome back team members to active roles as operations restart and rebuild to previous levels. In the meantime, anyone currently on temporary layoff who is returned to payroll via CEWS will remain at home on inactive status.

Certain team member health benefits have been maintained and paid for by the company during the temporary layoff period. This will continue, as will access to an Employee Assistance Program and other wellness programs.

About Porter Airlines

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On 4/12/2020 at 11:39 AM, GDR said:

Probably not. Canada like the US and others will simply, metaphorically speaking, simply print more money. What will happen IMHO, is that we will have high rates if inflation after we come out of all of this.

This is what I learned at Wharton. Assume you have 10 people adding a cup of water each for the required 10 cups. I can cook my pasta. If 5 people lost their cups, I wouldn't have enough water. No pasta. The central money supply steps in and gives those 5 new cups. No muss; no fuss. Now I have enough water for the pasta. Everyone eats!

Lo and behold, those pesky damn 5 find their cups. My pot is full; the water runneth over. The pasta will be ruined. Central money steps in and drains that extra 5 cups of water.

We're good to go....enough water; lots of pasta; smiley faces everywhere.

 

I never went to Wharton.

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6 hours ago, FA@AC said:

Interesting interpretation...

The government is extending credit and subsidizing wages for AC while the maple leaf carrier is sending aircraft to the US to park them. The daily and weekly maintenance of AC aircraft has been outsourced while contractual obligations forbid it at this time. 

And your interpretation is that the NDP thinks AC is sitting on a pile of money...

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6 hours ago, mrlupin said:

And your interpretation is that the NDP thinks AC is sitting on a pile of money...

I was referring to the MPs’ complaint about AC not paying to top salaries up to 100% for employees who aren’t currently working.

i wasn’t aware of the alleged contractual violations.

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On 4/9/2020 at 3:57 PM, Fido said:

When all of these workers get back What are they going to do?

 

They aren’t active employees. The government has agreed to cover/waive employer EI/CPP costs of they are inactive. If they are active then the employer pays it. It’s usually about a 10% cost to company. The employees will 75% of their former wages up to the cap with no top up. Essentially the employer is just forwarding the Fed’s cash to the employee. The employee sees 20% more than EI.

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On 4/18/2020 at 10:39 PM, FA@AC said:

Well these guys don't have a bloody clue.

Seems they are the ones that have misinterpreted the legislation

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Where are they supposed to park 148 aircraft?

All the 737s have been parked in the US because you don't want them sitting the Canadian seasons. Same goes for these, how long will they sit now?

I don't think any unions have a say on where aircraft are parked.

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17 hours ago, Bobcaygeon said:

They aren’t active employees. The government has agreed to cover/waive employer EI/CPP costs of they are inactive. If they are active then the employer pays it. It’s usually about a 10% cost to company. The employees will 75% of their former wages up to the cap with no top up. Essentially the employer is just forwarding the Fed’s cash to the employee. The employee sees 20% more than EI.

Ah, there is the rub.  Technically they are active employees.  they are being payed on the company payroll but are in "Off Duty" status.

The purpose of the legislation was to off load the EI requirements with something better.  This is NOT a normal situation.  the company is shut down because of the government not through any fault of their own same as EVERY other company that meets the criteria.

As for the aircraft and its maintenance requirements

1. Long term storage in Canada would be detrimental to the condition of the aircraft due to temperature and humidity concerns.

2. Where exactly are you gonna park them.  Even smaller places like Muskoka re housing aircraft for the airline

3. Moving the aircraft to the desert or to warmer / dryer climes is the proper and best move.

4. the facilities where the aircraft have been take specialize in this kind of work.

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