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The WestJet Savings Plan (WSP) is frequently referenced in conversations about total compensation, particularly in comparison to wages and other benefits. There is ongoing confusion about how the plan functions, which parts are protected under the Collective Agreement, and which elements the Company can change at its sole discretion. This communication outlines the key facts to support informed discussions about the plan’s value, limitations, and the scope of Union involvement.
Understanding this plan and how it may be changed by the Company is important for individual financial planning.
What Does “Scope” Mean?
In this context, “scope” refers to whether something falls under the legal authority of the Collective Agreement. If it does, it means the Union has the ability to bargain over it and enforce it. If it does not, it is fully controlled by the company and can be changed at its discretion without notice or negotiation.
Background on the WSP
The WSP was introduced in 2019 following WestJet’s purchase by Onex. WSP replaced the Employee Share Purchase Plan (ESPP), which previously allowed employees to purchase shares in the company-up to 20% of their salary.
The WSP is structured as a Company-administered savings and contribution program, offering two components:
- Registered Savings Plan (RSP): Employee contributions may be matched by the Company and placed in an RRSP or TFSA, up to a maximum of a 9% contribution.
- Cash Savings Plan (CSP): 1-, 2- or 3-year cash savings with varying interest amounts paid to the Employee based on the terms and length of the investment, as outlined in the policy.
The total value of both the RSP and CSP is up to the elections of the Employee to a total of 20%.
What the Collective Agreement and WSP Policy Say
The WSP in the Collective Agreement is found in Article 48 - WestJet Savings Plan
"Employees shall be eligible to participate in the Company’s voluntary WestJet Savings Plan (WSP), in accordance with the terms and conditions of the plan,
as they may be amended by the Company. An Employee’s elected contributions pursuant to the WSP shall be limited to a maximum of twenty percent (20%) of the Employee’s eligible earnings."
This language in the Collective Agreement provides the right to access the plan but does not protect the structure, value, or any of terms of the plan. All other elements are outlined in the WestJet Savings Plan policy and are under the control of the Company.
Item | Controlled By | Can It Be Changed By the Company Without Bargaining? | Reference |
| Access to participate in the WSP | Collective Agreement | No | Article # 48 - WestJet Savings Plan |
| Employee contribution limits | Company | Yes | WSP Section 5.01(b): "...up to a maximum contribution as set out below... Unless otherwise determined by the Committee...” (Page 7–8) |
| CSP Bonus (90%) | Company | Yes | WSP Schedule A: “Bonus: 90% of Participant CSP Contribution.” Confirmed variable by WSP Section 9.01(a): “The Board may... amend, alter, supplement, suspend or terminate the Plan...” (Page 15) |
| RSP Match (100%) | Company | Yes | WSP Section 7.01: “...Participant will receive... an amount equal to the Participant RSP Contribution (the ‘WestJet RSP Contribution’)” – subject to forfeiture rules. (Page 9-10) |
| Interest rate on CSP loans | Company | Yes | Schedule A : “Interest: 5.3%.” Set by the Company; WSP Section 6.03(b): “...rate of Interest will be set out in the Loan Agreement on the Portal.” (Page 15) |
| Timing of RSP match payments | Company | Yes | WSP Section 7.01(a–b): Matches paid twice yearly (Feb 15 and Oct 15 of the following calendar year). (Page 10) |
| Forfeiture of CSP bonus or interest upon resignation. | Company | Yes | WSP Section 9.01(a): “The Board may at any time and from time to time amend, alter, supplement, suspend or terminate the Plan...” (Page 12) |
| Eligibility criteria (e.g. 180 days service) | Company | Yes | WSP Section 4.01: Eligibility begins after “one hundred and eighty (180) days of continuous service...” (Page 7) |
| Overall plan administration and structure | Company | Yes | WSP Sections 2.02(a), 3.01, 3.02 : Plan is interpreted and managed by the Company-appointed Committee in its “sole and absolute discretion.” (Pages 4-6) |
It is important to note:
- No part of the WSP's structure, payouts, or conditions are protected under the Collective Agreement beyond the right to participate.
- All contribution rates, bonuses, interest, and timing are subject to unilateral change by WestJet, per Section 9.01 of the WSP.
- Forfeiture clauses are clearly outlined in Section 8.01 for resignation and 8.02 for termination, including proportional repayment requirements.
In Summary
The WSP is a discretionary Company policy. Access to the plan is protected through the Collective Agreement, but all other elements—including match percentages, bonus structures, interest rates, eligibility conditions, and payment schedules—can be changed or removed by the Company at any time.
This summary is provided to support accurate understanding and informed decision-making. If you have questions about any of the terms or would like help reviewing the official documents, reach out to your Unit Chair or consult the full WSP policy available on the Company portal.