The majority of the some 6 000 employees of Pratt & Whitney Canada (PW&C) in Quebec will see their salary reduced by 10% from the 1st of June next.
The news has been communicated to employees this morning in a message to employees, signed by Greg Hayes, president of Raytheon Technologies, the parent company of PW&C.
“The impact of the Covid-19 (…) is unprecedented. And no industry has been spared, it is written in the note that we have obtained. (…) The commercial aviation in the United States only dropped to 96% and the trend is global. Our business partners have begun to drastically reduce their activities in order to preserve their liquidity and protect their long-term needs. And now, we must do the same.”
Cut-off of 10% and three weeks of leave
From the 1st of June, and until the end of 2020, Raytheon imposes a salary reduction of 10% to all its employees, including those of its affiliates that are Collins Aerospace and Pratt & Whitney. The affected employees shall also impose this year 15 additional days leave, without specifying whether they should be taken with or without pay.
By the same occasion, the president shall inform its employees have voluntarily decided to temporarily reduce his own salary by 20% for the same seven-month period, which is due to end on 31 December 2020. The directorate of PW&C has referred our questions to the headquarters of the american Raytheon, which had not reminded at the time of writing these lines.
In his note to employees, the management of Raytheon adds that new programs of vacation for employees (paid by the hour), Pratt & Whitney and Collins Aerospace will be put in place to adjust to the lower demand of the customers.
These changes, will vary according to the countries, factories, and collective bargaining agreements specific to each location, is shown. The directions of each of the plants will communicate the changes to come directly to their employees. However, it was specified also, these will not be directly affected by the reduction in pay a temporary 10%, announced this morning.
20% less for unionized employees
The local president of the union Uniforms Daniel Guy, preferred not to comment, arguing that this announcement does not affect the unionized employees, the PW&C in Quebec.
On the 25th of march last, half of the approximately 2400 unionized P&WC had been placed off of paid work. The other half had remained in position, just as the 3500 non-union workers of the company.
Since last Saturday, the unionized employees are now working four days per week and undergo a salary cut of 20 %. The special agreement with the employer to this effect has received the support of 70 % of the union’s members.
At the New York stock exchange this morning, the action of Raytheon was up. Shortly after 12 :30, its share had climbed 3.99% to settle at 64,28 US$. Since the beginning of 2020, the value of its courses fell by more than half.