Please see the update below regarding the financial affairs of the Component:
Banking and Investments
As of May 1st, we currently have $3.2 million saved in three different GICs. I have started to diversify the term lengths on the GICs in order to get higher interest rates on longer term GICs with interest still paid out annually. We also have a balance of approximately $950,000 in our savings account.
As follow-up to the budget, ACCEX passed in December, I have continued to try and find further cost-savings as we did anticipate stable staffing numbers through the winter but instead saw layoffs again in February and March. Please see the below updates:
- We made further staffing reductions to our office staff with one member converting to part-time. For comparison, in March 2020 we had 7 full-time staff. We now have 3.5 full-time staff, and we will continue to subsidize this cost using the CEWS program which currently runs until September 2021.
- As previously reported, we were able to end our lease early for the YVR WCB Office last fall and cancel the associated phone and internet cost. We have also made the decision to pause the Component Worker’s Compensation Committee and rely on our Locals and CUPE National to support worker’s compensation appeals.
- ACCEX unanimously passed a motion earlier this year to suspended Local Budgets for February 2021 and March 2021. This was a significant cost savings as given the low active local membership numbers the base amounts plus the per member $8.00 would have left the Component with almost no leftover funds after the CUPE National per capita is paid.
- We had hoped to continue to reduce Local Budgets by a small percentage for the rest of the fiscal year, however the motion failed to garner unanimous support.
Our external auditors completed their audit of the 2020 Year-End Finances in January 2021 and the statements were unanimously approved by ACCEX at our last meeting. We remain completely up-to-date with our accounting audits. I wish I could say the same with our trustee audits however we currently find ourselves with all three elected trustees on layoff status. I hope to re-engage with our trustees in the near future once it is again permitted to conduct in-person meetings.
Highest Earner Top-Up
In my last update I advised that ACCEX had taken the decision to have legal counsel review the matter of two of the three former Component Officers not repaying the amount in disputed top-up. Upon review with counsel, the Union will not be pursuing the repayment any further and passed a motion as such. The bylaws now provide for a clear definition on highest earner going forward and the Union now considers this matter closed.
Secretary-Treasurer, Air Canada Component of CUPE