Description: WestJet pilots have agreed to take a 50% pay cut to keep more of them working during these interesting times. Though WestJet originally thought the effect of the pandemic on air travel would force a reduction of about 1,200 staff, the pilots’ offer has cut the number to around 450. Actions like this across the economy are helping to keep highly trained employees in their companies until the situation turns around.
Date: October 5, 2020
1) Would you be willing to take a 50% pay cut to save your fellow-workers’ jobs?
2) Why is it so important for businesses to keep highly-skilled people employed?
3) The opening vignette of Chapter 9 in Wiley’s Financial Accounting: Tools for Business Decision-Making, tells us how WestJet depreciates various components of its airplanes. Do you think WestJet could make a case for charging less depreciation in 2020 on some of its aircraft components?