February 18, 2020 at 3:11 PM
As you are aware, Air Canada made the decision in early 2019 to reduce the size of its regional airline network fleet by 35 percent which resulted in ending a 20-year partnership with Air Georgian on January 31, 2020. As a result, Air Georgian Limited filed a Notice of Intention (NOI) on January 31, 2020, to make a proposal under the appropriate Bankruptcy and Insolvency regulatory act.
What is a Notice of Intention (NOI) to make a Proposal?
What does this mean for the Members of Air Georgian?
- Air Georgian is not bankrupt but has gained itself of a procedure whereby an insolvent person, with creditor and Court approval, may restructure its financial affairs.
- An NOI is a procedure under the Bankruptcy and Insolvency Act that allows financially troubled companies the opportunity to restructure their affairs.
- The NOI/Proposal provides an opportunity for Air Georgian (also known as a ‘Debtor’) to avoid Bankruptcy and allows the creditors to receive some form of compensation amounts owing to them by the Company.
Air Georgian has advised the Union that they intend to work with Air Canada to conclude the return of assets during the NOI proceedings, and will require certain members to assist with this task.
- They also intend to retain several other members to maintain their operational requirements and help secure future work.
- Members' wages earned up to the NOI filing date will be paid in the normal course, however, time bank and outstanding vacation and stat holiday pay will not be paid to the members at this time as this falls under the NOI process. There is no severance pay allocated at this time either during this process. ROE’s are available online and members are urged to apply for EI benefits as soon as possible under the Service Canada website.
- Regrettably, Air Georgian is not able to retain employment for all the members at this time.
- The Company has advised the Union that it is intended to restructure and continue to purse securing new business opportunities.
Unifor recognizes the impact this announcement will have on our members’ lives and families and continue to work and assist members who are affected by the layoff notice.
We will keep you advised and will communicate additional information as soon as it becomes available. Please feel free to contact me should have any questions or concerns at [email protected]
Assistant to the Unifor Local 2002 President