Article from today's T&T
MFC merger means 21 layoffs
Published Thursday February 24th, 2011
New owner says 65 staff members were retained in deal to keep flight college operating
by alan cochrane
Times & transcript staff
Lindsay Savage had four years of service as a flight instructor and administrative manager with the Moncton Flight College but she and 20 other people lost their jobs without notice when the college went into receivership on Valentine's Day.
"I was pretty angry at first but I guess these things happen and you have to move on," says Savage, a native of Moncton who ran the Asia Pacific Department at the college. "I'll probably look for another job in a different industry because I'm three months pregnant and wouldn't be able to fly for a while anyway."
The Moncton Flight College was placed into receivership on Feb. 14 by Ernst & Young as a result of financial difficulties. After a week of negotiations, a deal was reached for CANLink Aviation to purchase the assets of the college and take over its operation. In the process, the college will make the transformation from a not-for-profit organization into a for-profit business. CANLink was already a partner with the college and ran the Fredericton campus of the college as a franchise business. CANLink CEO Mike Tilley says 21 positions were lost, but at the same time 65 positions were saved at the college.
The 21 positions lost include, administrative personnel, maintenance technicians and flight instructors. Tilley said
CANLink felt there were too many employees at the school and the number was trimmed from 86 to 65 to bring the organization to the right size based on the amount of business now being done and expectations for the near future. Tilley said he will take over as CEO when the deal is closed. Al Pendergast took over the job as Principal and CEO last August from Mike Doiron, who had held the post for 12 years.
Tilley stressed that the employees technically lost their jobs the moment the flight college went into receivership and their employer no longer existed. Those who remain are technically employed by the receiver, Ernst & Young, and will have their employment transferred to CANLink Aviation when the deal is closed on April 8.
"When Moncton Flight College went into receivership, any employment with them was over.
We see it as 65 jobs saved in Moncton and now the legacy will carry on. We're pulling this thing out of the fire and rebuilding," Tilley said.
The Moncton Flight College traces its roots back to 1929. In recent years the college has grown into an international facility that trains pilots from around the world.
Tilley said it was regrettable that jobs were lost but
the new owners are determined to keep the school going and retain its place in the Moncton community. Besides the 65 jobs in Moncton, another 48 will be preserved in Fredericton. The Fredericton campus operates under the same Transport Canada licence as the Moncton Flight College, so it likely would have been shut down had the Moncton operation not been saved.
Tilley said the pilot training industry is very cyclical and layoffs are common.
Savage said some of the staff predicted their job losses and saw trouble brewing at the college. She said getting the termination letter was a "pretty big downer," and isn't sure if she'll get more than a couple of weeks' pay in the end. George Kinsmen, executive-director for Ernst & Young in Halifax, said the receiver is now working with the laid-off employees to help them through the process of applying for benefits under the Federal Wage Earner Protection Plan.