Air Canada might have to pay over C$100 million (around $73.2 million) to approximately 2,200 ex-employees following a court ruling in their class-action lawsuit in Quebec. (Photo credit: BNN Bloomberg)
Air Canada may be on the hook for over $100 million following a recent court decision concerning a class-action lawsuit from around 2,200 former employees. This ruling comes from a Quebec court and is tied to the closure of Aveos, the airline’s previous maintenance contractor.
The decision was made by Judge Marie-Christine Hivon, who announced this week that the airline must address lost wages, lost benefits, and emotional damages that arose when Aveos shut down in 2012. Most of the affected workers are based in Montreal and were part of Aveos when the company locked them out and ceased operations. They claim Air Canada broke federal law by failing to keep maintenance jobs where they were located.
Back in November 2022, the judge ruled in favor of the former workers, and now, with this latest decision, the focus shifts to how much Air Canada will actually pay. While the initial calculations suggest a payout of around $100 million, Air Canada has stated that it's premature to determine an exact amount. The airline plans to appeal the original ruling, but an appellate court has put the appeal on hold until the damages assessment is completed.
According to lawyers representing the former employees, the minimum figure of $100 million is based on the damages identified. However, Air Canada insists that assigning a dollar figure at this stage is not feasible, emphasizing that the claims process will unfold on an individual basis.
Air Canada spokesperson Christophe Hennebelle explained in an email, “We have appealed the first part of the judgment regarding liability. We are also considering whether to raise additional points concerning the second ruling, although those wouldn’t matter if our appeal on the first part is successful.” Hennebelle noted that the ruling provides a method for calculating damages but does not specify a total amount. Therefore, any estimation at this point is merely speculation.
The outcome of this lawsuit is significant, not just for the former employees but for the airline as well. The case highlights the ongoing issues within the aviation industry related to job security and employee rights. Many in the industry will be watching closely as this case continues to unfold. The decision serves as a reminder of the legal obligations companies have toward their workers and the potential repercussions of failing to meet those obligations.
In the coming months, as the claims process begins, more details will likely emerge. For those affected, the hope is that this ruling will bring some form of justice and closure after years of uncertainty.
