I hope you are staying healthy and got to enjoy your summer, even if it did not involve your usual peak summer flying. Similarly to many of our members, the COVID-19 pandemic continues to affect the Union’s financial position and we continue to take steps to address it by reducing our cash burn as much as possible. Please see the following updates since my last report.
We currently have the majority of our cash invested in three GICs with maturing dates over the next year. Fortunately, all of our GIC’s were purchased prior to the drop in interest rates as result of COVID-19, so we are earning considerable returns.
Belfield Office Update
The Component office reopened in August as the Toronto region entered “Phase 3” of the Ontario Government’s reopening plan. As part of our reopening our Staff and Committee Members continue to have the option of working from home as they have done so effectively while the office was closed. This is also inline with our budget passed in June which had all Component Committees reduce their in-office time by 50% to save on expenses.
As a follow-up to the Budget we passed at our June ACCEX meeting, I have continued to try and find further cost-savings. We continue to take advantage of the CEWS for our office staff which was recently extended until December 2020. Unfortunately, the new formula is less advantageous with weekly payments decreasing over the next few months and we have therefore adjusted our staffing levels accordingly.
The 2019 year-end audit was completed by our external auditors in early August and approved by ACCEX at our August meeting. Thankfully, this was a much simpler process as it was the first full year with new bookkeepers. This term we have been able to bring the Component up to date by completing 4 years of audits. We will also begin the 2020 year-end audit on schedule in January 2021.
Highest Earner Top-Up
As you may recall, last term there was a disputed amount of top-up paid to the Component Officers during their term. When I took office last year, I was first tasked by ACCEX to reconcile the disputed amount and attempt to recover the funds. At that time, the former Component Secretary-Treasurer was the only officer who responded and paid the disputed amount in full.
At our ACCEX meeting last month we discussed ways to recover payment from the former Component President and Component Vice-President. A decision was made to send a final letter requesting payment by September 30, 2020. This letter was signed by all the voting members of ACCEX and advised if we did not hear back by September 30th that we would review our options to take legal action against the former officers.
Please see the table below for the highest earner in the bargaining unit for the past six months.
|Block Month||Highest Earner|
Statement of Operation – 2020 Fiscal Year (July 2019- June 2020)
As noted below we do end the year with a small deficit, however this is solely a result of the 2-month dues reduction that put $505,910 back into the membership’s pocket. If we had not provided this reduction, we would have ended the year with a significant surplus.
Dues Income $5,006,812
Rental Income $52,008
Other Income (interest on investments) $89,169
Total Revenue $5,147,989
Dues Paid to CUPE National $1,742,547
Airline Division Affiliation $9,627
Funding to Locals (YVR, YYC, YUL, YYZ and RG) $1,039,659
Administration (Staff and Building) $832,998
Grievance Legal/Arbitration $637,027
Total Expenses $5,321,683
Surplus (Deficit) ($173,694)
Wishing everyone a happy and healthy fall!
Secretary-Treasurer, Air Canada Component of CUPE