AVEOS – CCAA EMPLOYEE CLAIMS PROCESS -District 140 Bulletin#63

ALL IAMAW MEMBERS

AVEOS – INFORMATION UPDATE

CCAA EMPLOYEE CLAIMS PROCESS

The Union is continuing to represent the interests of all former Aveos Members in all aspects of the ongoing Aveos CCAA process.

On June 26, 2013 Aveos will put before the CCAA Court an Employee Claims Motion. This Motion will begin a claims process that will fix the amounts that Aveos still owes to Members, and will later allow them to file a claim under the Wage Earner Protection Program.

All CCAA Court Orders and documents can be viewed at http://cfcanada.fticonsulting.com/aveos.

SUMMARY:

If the Court allows this Motion:

  • Members employed by Aveos at its closure should receive a letter from the CCAA Monitor in early July.
  • Members will NOT need to file a proof of claim if they agree with the figures in the letter from the Monitor.
  • If a Member disagrees with the figures in the letter from the Monitor they must file a proof of claim with supporting documentation, before August 12, 2013.

The background and further details are set out below.

Background

In the course of the CCAA process, payments have been issued to former Aveos Members through the First Payroll Order (covering wages owed by Aveos for work carried out in the final weeks of its operation); the Second Payroll Order (covering any priority payments outstanding to Members, as described in Aveos Update, December 4, 2012), and, through the Air Canada Separation Program, to those Members who were eligible.

Former Members of Aveos are still owed a significant amount of money by Aveos in unsecured debt which Aveos will not be able to pay, because its funds are not sufficient to pay its secured creditors. However, a government program (the Wage Earner Protection Program or “WEPP”) is available to cover certain unpaid debts to employees up to the WEPP cap (a maximum of approximately $3,400 after required statutory deductions). The debts eligible to be claimed under the WEPP are unpaid wages earned during the six (6) months prior to the start of the CCAA, and termination and severance pay.

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AVEOS INFORMATION UPDATE – JUNE 21 2013 – CONT’D

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The WEPP has not been triggered by the CCAA process, but Aveos has agreed that it will take the necessary steps to trigger it towards the end of the CCAA process, most likely not before the end of October, 2013.

The WEPP is triggered by a bankruptcy, or by certain kinds of receiverships. The Union has pushed throughout this process to ensure that the WEPP will be triggered, and to have it triggered as early as possible.

To date, Aveos and the relevant government agencies have not been able to agree on a method of triggering the WEPP in the course of the CCAA process that is acceptable to them both. A fight between Aveos and the government about whether the WEPP has been properly triggered could result in your losing access to the WEPP altogether. The trigger currently planned for the end of October will be in a form acceptable to both the government and Aveos. Therefore, in order not to risk your entitlements, access to the WEPP will be delayed until that time.

The Motion set for June 26, 2013 will begin the claims process that will fix the amounts that Aveos owes to former employees and the amounts that the former employees can claim from the WEPP, once it is triggered.

The Claims Procedure

Assuming that the Employee Claims Process Motion is accepted by the Court as drafted on June 26, 2013, the following are the next steps:

  1. Members will receive a letter from the CCAA Monitor to their last known address. The Union expects this letter to be sent out immediately after June 26, 2013.
  2. The letter will set out what the Monitor believes Aveos owes Members based on Aveos’ records. It will also set out any amounts that Aveos’ records show that Members owe to them (for example, for negative OT bank or vacation). When the letters are issued, the Union will post further information explaining in detail what is captured under each heading.
  3. If the letter accurately sets out what Aveos owes to Members and any Member debts to Aveos THERE WILL BE NO NEED TO TAKE ANY FURTHER STEPS. A proof of claim will be filed in the process on behalf of the Members by the Union, and a claim will also be recognized in the process for amount set out in the letter from the CCAA Monitor.

(a) The Union has been working with Aveos over the course of this process to make sure that Aveos has included all sources of debt to Members and that its records are as accurate as possible, but it is still possible that Aveos’ records are not 100% accurate. Therefore each Member must review their letter carefully.

ONLY if you believe that the amounts are wrong, or that a debt Aveos owes you has been missed, should you file your own proof of claim. Supporting documentation must be attached.

(b) The Union’s proof of claim will be based on the same records as the claim to be filed by Aveos, but there may be a few instances where the Union may disagree with Aveos on the legal principles behind the calculation. In those cases the Union’s proof of claim will be filed in a higher amount (or in a manner that results in a higher WEPP entitlement) than is set out in the claim filed on your behalf by Aveos. If you file your own proof of claim it will take precedence over the proof of claim filed by the Union on your behalf.
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AVEOS INFORMATION UPDATE – JUNE 21, 2013 – CONT’D

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4. If you think the Monitor’s letter is not accurate you will need to file a proof of claim before 5 pm (Montreal time) on AUGUST 12, 2013, in accordance with the instructions in the letter. August 12, 2013 is the “Employee Claims Bar Date” and employee claims not put forward by that date will be forever barred against Aveos. We expect that most Members will not need to take this step.

(a) The Union will receive a copy of all individual proofs of claim filed by Bargaining Unit Members. If our lawyers believe that you are entitled to an amount greater than you have claimed, a representative of the Union may contact you to see if you want to amend.

IF YOU ARE FILING AN INDIVIDUAL PROOF OF CLAIM PLEASE DO SO WELL BEFORE THE AUGUST 12, 2013 DEADLINE, SO WE CAN PROVIDE YOU WITH THIS ASSISTANCE. AFTER AUGUST 12, 2013 YOU CAN NO LONGER AMEND YOUR INDIVIDUAL CLAIM.

5. The CCAA Monitor will rule on claims filed in this process. The Monitor will publish a list of Employee Claimants whose Employee Claims have been accepted on its website. If you file an individual proof of claim which is disallowed or revised by the Monitor you will receive written notification of the Monitor’s ruling.

6. There is an Appeal Period that runs for twenty-one (21) days after a notice of revision or disallowance is received from the Monitor. We will provide further instructions on the Transportation District 140 website (http://www.iam140.ca/) about how to contact the Union and what steps you need to take if you want to appeal a decision by the Monitor.

7. The WEPP is not triggered yet and you cannot yet file a claim. Once the WEPP is triggered, you will be provided with further instructions about how to file a claim.

We will provide more information on the Transportation District 140 website about each step in the Employee Claims Process, as it occurs, and will continue to keep you informed of further developments.

In Solidarity,

Fred Hospes, President and Directing General Chairperson
Transportation District 140, IAMAW

BULLETIN NO. 063 – ISSUED JUNE 21, 2013
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