Freeland says feds will voice concerns to Air Canada over executive bonuses
Air Canada is heading for a bout of political turbulence as Finance Minister Chrystia Freeland signalled her displeasure over millions in bonuses to the airline's executives as the company negotiated a federal bailout.
The airline on Monday disclosed in its annual proxy circular to shareholders that it gave $10 million in bonuses to people the investor document called instrumental to the airline's survival over the past year as air travel plunged during the pandemic.
In a lengthy comment Wednesday, Freeland, calmly and slowly, said she was disappointed in how some businesses seem not to be behaving as responsible corporate citizens while receiving taxpayer-funded federal aid to survive the pandemic.
On the bonuses themselves, she called them inappropriate.
In April, the airline and government agreed to a $5.9 billion loan package that includes money to help refund passenger tickets, but also capped executive compensation at $1 million until 12 months after the loan is fully repaid.
The government also paid $500 million for a six per cent stake in the country's biggest airline, which Freeland says was done to ensure taxpayers could benefit once Air Canada's revenue rose once regular travel resumed.
It also makes the government one of the key shareholders in the airline.
"That gives us a voice in decisions taken by the company, and we will not shy away from using that voice to express our very reasonable view of what constitutes responsible corporate behaviour," Freeland said.
"Canadian companies receiving money from the government have a duty to behave responsibly when it comes to regular Canadians who are now their shareholders as well as their customers."
In the House of Commons later, Prime Minister Justin Trudeau said the airline's executives needed to provide an explanation as he was pressed by the Bloc Quebecois to make Air Canada claw back the compensation.
Freeland made the comments during a call with reporters where she outlined the details of a new federal program to help eligible companies rehire laid-off staff, or boosting hours for existing workers, by underwriting up to half of the payroll increase.
The government sees the program as an avenue to flow aid to recovering businesses as it winds down the wage subsidy, which has provided over $80 billion in aid to date. The official launch can't happen until Parliament approves the Liberals' budget bill, but the government is promising payments to be retroactive to June 6.
The value of the wage subsidy and suite of "recovery" benefits are set to decline starting next month. Freeland said the government will be looking at a suite of indicators before changing plans, including vaccination rates and case counts, how much of the economy has reopened, employment levels and hours worked.
The Air Canada investor document noted the airline benefited from $554 million through the wage-subsidy program in 2020, which the company said helped retain workers even as it laid off 20,000 staff because of the downturn.
The document said the airline plans to continue applying for the aid.
Freeland herself was scheduled to get on a plane later Wednesday to fly to the U.K. for a gathering of G7 finance ministers, which she noted was an in-person-only event.
As part of her travel plans, Freeland said she consulted the country's chief public health officer, got tested for COVID-19 earlier this week, and plans to take precautions while at the meetings and then finally staying in a government-quarantine hotel before isolating in her home.
She said travel should be undertaken with extreme care and only where absolutely necessary.
"I undertake this trip with great reluctance because I think it is important for all of us to stay as close to home as possible," Freeland said. "But my judgment was that it was important for Canada to have a seat at this table were some important decisions that will have a real effect on the lives of Canadians."
Among the decisions expected are consensus on a global corporate tax rate that the United States has pushed. Freeland said Canada backs the concept, but wants to hammer out what the rate should be and the rules about how taxes are levied, which vary by jurisdiction.
Similarly, Freeland said she's also looking for agreement on taxing digital services. Absent consensus, Freeland said the government would move ahead unilaterally with its own digital services tax starting Jan. 1, 2022.
This report by The Canadian Press was first published June 2, 2021.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
RCMP uncovers alleged plot by 2 Montreal men to illegally sell drones, equipment to Libya
The RCMP says it has uncovered a plot by two men in Montreal to sell Chinese drones and military equipment to Libya illegally.
Demonstrators kicked out of Ontario legislature for disruption after failed keffiyeh vote
A group of demonstrators were kicked out of the legislature after a second NDP motion calling for unanimous consent to reverse a ban on the keffiyeh failed to pass.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
Government agrees to US$138.7M settlement over FBI's botching of Larry Nassar assault allegations
The U.S. Justice Department announced a US$138.7 million settlement Tuesday with more than 100 people who accused the FBI of grossly mishandling allegations of sexual assault against Larry Nassar in 2015 and 2016, a critical time gap that allowed the sports doctor to continue to prey on victims before his arrest.
Man wanted in connection with deadly shooting in Toronto tops list of most wanted fugitives in Canada
A 35-year-old man wanted in connection with the murder of Toronto resident 29-year-old Sharmar Powell-Flowers nine months ago has topped the list of the BOLO program’s 25 most wanted fugitives across Canada, police announced Tuesday.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
Thieves use stolen forklift to rip cash machine out of U.K. bank
Police in the U.K. are searching for a group of suspects seen on video using a forklift to steal a cash machine from a bank.
'There was a lot of black smoke': Crane operator sounds alarm while trapped during highrise fire in Halifax
A tower crane operator alerted emergency crews after noticing a fire on a construction site in Halifax Tuesday morning.
Local Spotlight
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
'I'm committed': Oilers fan won't cut hair until Stanley Cup comes to Edmonton
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
'It's not my father's body!' Wrong man sent home after death on family vacation in Cuba
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
'Once is too many times': Education assistants facing rising violence in classrooms
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
What is capital gains tax? How is it going to affect the economy and the younger generations?
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
UBC football star turning heads in lead up to NFL draft
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Cat found at Pearson airport 3 days after going missing
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.
Molly on a mission: N.S. student collecting books about women in sport for school library
Molly Knight, a Grade 4 student in Nova Scotia, noticed her school library did not have many books on female athletes, so she started her own book drive in hopes of changing that.
Where did the gold go? Crime expert weighs in on unfolding Pearson airport heist investigation
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.