Air Canada union irate following collection agency threat

Overpayments to staff for meal allowances totalled about $600,000
By Uyen Vu
|Canadian HR Reporter|Last Updated: 01/17/2005

In a move not often seen in employee relations, Air Canada threatened to turn to a collection agency to recover meal allowances it had overpaid to some 5,100 employees.

The company has since backed off from this threat, but the move generated considerable bad press for Air Canada.

The problem started with an “inputting error” in May that resulted in 5,100 flight attendants being paid for meals that they weren’t entitled to. Some overpaid amounts were as little as $20, but the total was about $600,000.