Jetsgo staff shortchanged in final cheques
Jetsgo employees got more surprises when they picked up their final cheques Monday.
Workers went to Toronto's Pearson Airport and Jetsgo's Montreal head office three days after the discount carrier grounded its 29 planes and sought protection from creditors.
The former employees had been told that they had to turn in parking passes, pagers and other company equipment before getting their last cheques.
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Jetsgo was offering to pay all back wages up to Thursday at midnight, when the airline ceased operating. It also offered employees their 2004 and 2005 vacation pay and outstanding per diems, providing company property was handed over.
But some workers said they'd been shortchanged.
"There's missing money in my cheque," said Julio Manesis, a former employee based in Montreal. "They told me they're going to send [the rest] by post. I have to wait a week."
Many, like Manesis, lost money on overtime.
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"I got three kids to support. I'm a single father, what am I supposed to do?" said one man in Toronto.
A bigger surprise waited at the bank â Jetsgo's bank refused to cash many of the cheques.
"They're saying that no one will know anything for the next few days, and that there's no money in the account," said ex-employee Jami McKenna, who tried to cash his cheque.
Some pilots were out thousands of dollars, having had to put up a $30,000 bond to train, to be reimbursed after their first six months.
"They should have put that money into an escrow account, to be protected," said Patrick Lamoureux, a pilot who had been with Jetsgo for only five months.
The collapse of the airline put 1,350 people out of a job. It also left about 17,000 passengers with useless tickets.
The airline has been granted court protection from its creditors and has until April 11 to try to get its finances in order.
Court documents show Jetsgo has been losing thousands of dollars a day â an estimated $55 million in the last eight months.
- FROM MAR. 11, 2005: Jetsgo lost $55 million in 8 months, court told
Air Canada and WestJet have added extra flights to try to help passengers stranded when Jetsgo shut down.
MasterCard, Visa and American Express say those who bought tickets using their credit cards won't get charged for the now worthless Jetsgo tickets.
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Meanwhile, the Consumers Association of Canada has called on Transport Minister Jean Lapierre to resign, saying he should have issued warnings to Canadians that Jetsgo was in trouble.
"We also want to know why Lapierre and his spokespeople are refusing to answer any more questions about what he knew about the discount airline's financial troubles," said Mel Fruitman, vice-president for the consumers' lobby group, in a news release
Lapierre has insisted he didn't know that Jetsgo would declare bankruptcy.