Employees say wages rolled back at Wasaya Airways

CBC News has learned employees at Wasaya Airways will have their wages rolled back by five percent.

The wage cut comes after the company announced it has purchased two Dash-8-100PF aircraft, which are being retrofitted to carry only cargo.

Sharon Smith-Baxter, a spokesperson for Wasaya, told CBC in an e-mail that the company provided payments and deposits over a year ago for the two additions to the fleet.

Smith-Baxter said the acquisitions are part of the fleet renewal plan, within the New Business Plan. Wasayarestructured its debt about a year ago, paying ten cents on the dollar to unsecured creditors.

The company, at the time, had about $35 million in debt. About a quarter of it was owed to the Royal Bank of Canada.

Part of the reason for the new Dash-8s added to the Wasaya fleet is the pending retirement of its Hawker Siddeley 748 aircraft. Those planes are over 50 years old, and are becoming more expensive to maintain, along with finding parts.

"There is only engine overhaul shop in the world approved by Transport Canada to do work on the engines, and it is located just about as far away from our operation as possible, in South Africa," she wrote.

Smith-Baxter said Wasaya is continuing to look for a large cargo door replacement plane, as the Hawkers are scheduled for retirement within the next 24 months.