Secretary Treasurer Report – December 2020

Please see below the quarterly updates regarding the financial affairs of the Component:

Budget Follow-Up
As a follow-up to the 6-month Budget passed by ACCEX in June 2020, I have continued to try and find further cost-savings:

• We were able to end the lease and associated expenses for a small office that we had in YVR last month. This office was used by a member of our Worker’s Compensation Committee and they will now work out of the Local 4094 Office.
• We have cancelled our Bell telephone lines at the Component Office. Our local number, toll-free number, and extensions all remain the same, but instead of having a traditional phone in the office the phone will now “ring” on our laptops and cell phones.  This represents a savings of approximately 66% and allows us to make and receive calls using our Component numbers from anywhere we have an internet connection. Most of our staff and committee members are working from home due to COVID-19 therefore it makes logical sense to initiate this changeover.
• There will be no 2021 CUPE pocket calendars printed this year. Not only is this a large cost savings but it also aligns with our goals of reducing our Union’s environmental footprint. The same information that was normally found in the front pages of the calendar can be accessed on the Component Mobile App or Website.  We have also noted over the years that members are moving over to online resources, so with the elimination of the paper calendar, we have also increased the information on our App and Website.
• We will continue to take advantage of the CEWS program for our office staff. Unfortunately, the new formula is less advantageous with weekly payments decreasing and as such had to make the difficult decision to layoff one staff member.

ACCEX will be meeting in the coming weeks to review and approve a further 6-month budget for the second half of the 2020-21 Fiscal Year.

Audits
Our external auditors are scheduled to begin their audit of the 2020 Year-End Finances in January 2021. This will ensure we remain completely up-to-date with our accounting audits.  I also hope to have the Component Trustee’s resume their audits in the new year, now that all three have received the required training. The COVID-19 pandemic caused a delay in getting training scheduled for our newest trustee as CUPE National was not offering any education courses throughout most of the year until they recently launched virtual offerings.

Highest Earner Top-Up
In my last update I advised that ACCEX sent letters to the former Component President and Component Vice-President regarding repayment of disputed amounts in top-up payments last term. Neither of the two former officers responded to the letter. ACCEX has taken the decision to have legal counsel review this matter and provide guidance to us. In addition the current Component President has not been part of these discussions or decisions and has excused himself during meetings where it is discussed.

Please see the table below with amounts for  the Highest Earner for September and October 2020:

Statement of Operation – Q1 2021 Fiscal Year (July 2020-Sep 2020)
For Comparison, our Income during the first quarter is the equivalent of a single month’s income in 2019. We are currently in a deficit position, which was expected through the budgeting process in June as we have many fixed costs.  In addition, many annual expenses such as our property tax, commercial insurance, and grievance database fees were all recorded in the first quarter which does make the deficit larger. So far from reviewing the second quarter it does appear we will be in a break-even position.

Wishing everyone a wonderful holiday season and hopefully a brighter and better 2021!

In Solidarity,

Alex Habib
Secretary-Treasurer, Air Canada Component of CUPE