Sunwing pilots filed a complaint at the Canada Industrial Relations Board Monday, July 4, 2022, alleging their employer bargained in bad faith during a recent round of negotiations because the employer already knew the company was being sold to WestJet.

“Despite management reassurances that the company was not a candidate for a sale or merger, Sunwing was sold to WestJet shortly after the collective agreement was signed – a huge slap in the face,” said Scott Doherty, Unifor’s Executive Assistant to the National President.

Unifor and Sunwing reached a tentative agreement on Jan. 23, 2021. In the complaint, the union states that less than two weeks later, the Globe and Mail published a story, as well as other media outlets, where Sunwing CEO Stephen Hunter is quoted as disclosing that Sunwing had received a purchase offer from an unnamed company. In the same article, an unnamed executive source told the media outlet WestJet and Sunwing had discussed WestJet purchasing Sunwing in the past.

The union and Sunwing ratified the four-year deal on Feb. 12, 2021.

“It was of paramount importance to the union to receive assurances from the employer that it was not discussing a sale to WestJet, as any potential sale would have had important consequences on the union’s positions with respect to bargaining,” the filing reads.

Section 50 of the Canada Labour Code imposes a duty on the parties to a collective agreement to bargain in good faith, including to answer honestly whether it will likely implement changes during the term of a proposed agreement that may have significant impact on the bargaining unit.

On March 2, 2022, Sunwing and WestJet announced that WestJet would be buying Sunwing, pending regulatory approvals.

“Sunwing pilots recently negotiated a contract that made several concessions with the understanding the pandemic had placed major financial pressures on the airline. It’s not only the employer’s duty to bargain in good faith – it’s the law,” said Barret Armann, President of Unifor Local 7378, the union that represents 452 Sunwing pilots.

“Had this sale been transparent during bargaining, we could have pushed to include job security language in case of acquisitions.”

Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

Sunwing Airlines aircraft photo gallery:

It’s official. WestJet issued this statement:

WestJet and Sunwing announced today that they have reached a definitive agreement under which the WestJet Group of companies will acquire Sunwing Vacations and Sunwing Airlines.

The transaction will bring together two distinctly Canadian travel and tourism success stories to deliver new travel options and greater value for travelers in the rapidly expanding leisure and work-from-anywhere travel markets. The combination will enable both companies to protect and create jobs and rebuild strength in the Canadian travel industry at a critical time.

Following the close of the transaction, a new tour operating business unit will be created under the WestJet Group, to include both Sunwing Vacations and WestJet Vacations Inc., and will be led by Sunwing CEO Stephen Hunter. Sunwing’s current shareholders will become equity holders in the WestJet Group.

Canadian travelers will have access to more competitive airfares and affordable vacation packages through the combined strength of the companies. The tour operator business will be headquartered in Toronto, with a Quebec head office in Laval and the business will continue to market the Sunwing brand alongside WestJet Vacations. The WestJet Group will maintain its head office in Calgary.

The WestJet Group of companies will expand to include Sunwing Airlines. This will add increased capacity, dedicating otherwise seasonal aircraft to operate year-round in Canada, instead of Sunwing supplementing seasonal demand with imported aircraft, which translates into more jobs for Canadians. This acquisition will improve the WestJet Group’s ability to offer more affordable fares by immediately expanding its low-cost footprint in Canada.

WestJet Group and Sunwing intend to build on their collective history of constructive labour relations and will respect all arrangements with union and employee associations, including those in place and those currently under negotiation.

As a result of the resiliency created by the transaction, Sunwing expects to no longer require the pandemic-related Large Employer Emergency Financing Facility (LEEFF) Sunwing obtained from the Canadian government in early 2021, which will be fully repaid upon closing of the transaction.

The combination, which remains subject to receipt of regulatory approvals, is anticipated to close late 2022.