Economy Perks Up
Another day, another conundrum for the Bank of England and another small sigh of relief for the government.
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Yahoo
27 minutes ago
- Yahoo
Air Canada flight attendants on strike, airline's flights cancelled
Passengers around the world are feeling the effects after the union representing more than 10,000 flight attendants with Air Canada announced its members were walking off the job after it was unable to reach an eleventh hour deal with the airline. The strike officially began just before 1 a.m. ET on Saturday. Keelin Pringnitz and her family, from Ottawa, were returning from a European vacation, but were left stranded after flights were cancelled. 'It was an end of my maternity leave kind of trip. We went to the Faroe Islands in Norway, travelling through Air Canada to London,' Pringnitz said from London's Heathrow Airport. She and her family were working to find an alternative route home. The airline said all Air Canada and Air Canada Rouge flights would be cancelled amid the work stoppage. Around 130,000 customers will be affected each day that the strike continues, the company said. "Air Canada deeply regrets the effect the strike is having on customers," it said in a brief statement early Saturday morning. Flights by Air Canada Express, which are operated by third-party airlines Jazz and PAL, are not affected. The Air Canada component of the Canadian Union of Public Employees said picket lines will be active at airports across Canada, including Montreal, Toronto, Calgary and Vancouver. Striking flight attendants also plan to picket at airports in Halifax, Ottawa and Winnipeg. "Negotiations between CUPE and Air Canada have ended in impasse," the union said in a press release early Saturday morning. "We are heartbroken for our passengers. We do not want to go on strike, and we do not want to be locked out, but it is clear that Air Canada has no incentive to bargain." Air Canada previously asked Jobs Minister Patty Hajdu to intervene by ordering the parties to enter a binding arbitration process — a power granted to the minister through Section 107 of the Canada Labour Code. On Friday, Hajdu urged Air Canada and the union to get back to the negotiating table, suggesting she's not ready to intervene in the dispute. The minister said the union has indicated many of its demands have been met, suggesting there is a path forward to a deal. Hajdu had asked the union to respond to the company's request. CUPE indicated Friday it opposed arbitration, instead maintaining its desire to solve the impasse through bargaining. Although the government hasn't said it will intervene, the union seemed to imply throughout the week that the writing could be on the wall. CUPE accused Air Canada of refusing to bargain in good faith "due to the likelihood of the federal government using Section 107 of the Canada Labour Code to interfere in negotiations and have a contract imposed by an outside third-party arbitrator." The union has said its main sticking points revolve around wages that have been outpaced by inflation during the course of its previous 10-year contract, along with unpaid labour when planes aren't in the air. "Air Canada still refuses to compensate flight attendants for all hours worked," said CUPE's press release. "The union has been firm: all safety-related duties should be paid at full hourly rate. Air Canada does not agree. On wages, Air Canada's last offer will still leave flight attendants living below poverty levels for many years to come." On Friday, the union released polling by Abacus Data indicating that 59 per cent of Canadians believe the federal government should respect flight attendants' right to take job action, even if it causes travel disruptions. The weighted survey of 1,500 respondents, conducted Thursday and Friday, said 88 per cent of Canadians believe flight attendants should be paid for all work-related duties including boarding, delays and safety checks. Four-in-five respondents said they support raising flight attendant pay to meet the rising cost-of-living. Air Canada has said its latest proposal included a 38 per cent increase in total compensation over four years, including a new provision for ground pay "that is industry-leading in Canada." The proposal would provide "significant improvements" to health benefits and pension plans, an increase to paid vacation and measures to address union concerns about rest and work-life balance, the airline said. "It will make Air Canada flight attendants the best compensated in Canada," the company said, adding its cabin crew already earn up to $17 more per hour than their counterparts at Air Canada's largest domestic competitor. Air Canada cancelled more than 600 flights over the past two days in preparation for a potential work stoppage, affecting 100,000 passengers. It said it will notify customers with imminent travel of additional cancelled flights and their options. The airline has said passengers whose flights are cancelled will be offered a full refund or the opportunity to change their travel plans without a fee. It added it strongly advises affected customers not to go to the airport unless they have a confirmed ticket on an airline other than Air Canada or Air Canada Rouge. As for Pringnitz and her family, she noted there was an option for travellers to go the United States. but was told there wouldn't be any further assistance once they landed in the U.S. 'It didn't go over well with the line. Nobody really seemed interested, everybody seemed a little bit amused almost at the suggestion, or exasperated, because it is a bit ridiculous to offer to take stranded passengers to a different country to strand them there.' For customers due to travel soon whose flights are not yet cancelled, Air Canada said it will allow them to rebook their travel or obtain a credit for future travel. This report by The Canadian Press was first published Aug. 16, 2025. Companies in this story: (TSX:AC) Sammy Hudes, The Canadian Press Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Complaint made about shutting prominent prep school
A parent group has lodged a formal complaint with the Charity Commission over the management of a prominent preparatory school that has since closed. The complaint against the Uppingham School Group, which ran Maidwell Hall in Northamptonshire, alleged failings including financial mismanagement, governance breaches, charity law violations and the false solicitation of fees. It centred on the decision leading up to and including the shutting of Maidwell Hall. Uppingham School Group said it would be "robustly refuting the claims made in the complaint" if the Charity Commission investigated. The Charity Commission said it was "assessing concerns raised" to "determine any next steps". Maidwell Hall was founded in 1911 and was one of the country's best-known prep schools. Previous pupils include former Poet Laureate Andrew Motion, writer and restaurant critic William Sitwell and Earl Spencer. The parent group claimed the decision to close the school was made in mid-2024, but parents were not informed until January 2025, despite the school enrolling new pupils during that period. It also questioned why a parents' rescue bid backed by the David Ross Educational Trust was rejected. A spokesperson for a Maidwell parents' group said: "During the last seven months, it has become evident that there is a case to answer regarding the financial mismanagement, governance failures and breaches of charity law by Uppingham. "We believe it is only right and proper that this is thoroughly investigated by the commission." 'Significantly loss making' A statement from the Uppingham School Group refuted the claims made by the parent group. It said a decision to close Maidwell School was made on 30 November 2024 at a Trustee meeting, which was then shared in January following a consultation period. The group said the proposed rescue bid had "significant gaps" and underestimated the school's expenditure, among other issues. Uppingham said that although it had increased pupil numbers and invested in the school, it "remained significantly loss-making", and then faced further financial pressures following the introduction of VAT on private school fees and the increase in employers' National Insurance contributions. The statement added that Maidwell Hall would have "faced almost certain insolvency" in 2022 had Uppingham not rescued it and repaid a "six-figure bank loan". A Charity Commission spokesperson said: "We are assessing concerns raised with us about Uppingham School to determine any next steps. In line with our guidance, Uppingham School promptly reported the closure of Maidwell School to us." Northamptonshire Police confirmed a separate police investigation into Earl Spencer's allegations of physical and sexual abuse at the school in the 1970s was ongoing. Follow Northamptonshire news on BBC Sounds, Facebook, Instagram and X. More on this story Earl Spencer's school to close amid abuse inquiry Related internet links Charity Commission
Yahoo
an hour ago
- Yahoo
'Trump Account' newborns could have $1.9M by 28, Treasury Dept. says — here's what's required to get that much
When the One Big Beautiful Bill was signed into law on July 4, it created a new account for children. The so-called 'Trump account' provides a one-time $1,000 deposit from the government at birth and gives parents and relatives the chance to make additional contributions each year. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it The Treasury Department has now claimed that the accounts could grow to $1.9 million over 28 years — although to reach that goal, parents would need to invest quite a bit of additional money, beyond that initial $1,000 seed contribution. Here's what you need to know about these accounts, how they work, how much they could grow and how they compare to other popular investment options parents can leverage for their children. How the new Trump accounts work The One Big Beautiful Bill allows parents to open Trump accounts at any bank of their choosing for children born after December 31, 2024 and before January 1, 2029 and the government will provide the initial $1,000 investment. However, the child must be a U.S. citizen with a Social Security number. Of course, parents can still open Trump accounts for children born at other times, but anyone born outside this period won't qualify for the $1,000 seed money. The money can then be put into an eligible investment such as a mutual fund or ETF that tracks a financial index like the S&P 500. The investment can't have fees or expenses above 0.1% and it must include equity investments primarily consisting of U.S. companies. Read more: Nervous about the stock market? Gain potential quarterly income through this $1B private real estate fund — even if you're not a millionaire. Parents are allowed to contribute up to $5,000 per year to these accounts, while their employers are allowed to invest up to $2,500 (just note that the $2,500 employer contribution counts towards the $5,000 annual limit). This amount is adjusted for inflation. While employer contributions are not taxed, parent contributions aren't tax-deductible. The invested funds will grow tax-free until the money is withdrawn, with children having the option to take out the money once they reach the age of 18. At that time, a withdrawal triggers a tax event and is treated like an IRA for tax purposes. As the Tax Foundation and AEI explain, this means: Withdrawals will be taxed at ordinary income tax rates Withdrawals are subject to a 10% penalty unless made after 59½ or used for a qualifying purpose, such as covering college costs or going towards a home The goal is for children to benefit from compound growth and, as the Treasury Department explains, the accounts could potentially be worth as much as $1.9 million by age 28. However, that would require parents to max out the accounts, or invest the maximum every year until the child's 17th birthday (which starts at $5,000 per year and which will be adjusted up for inflation). If there are no additional contributions, however, even the initial $1,000 could turn into between $3,000 and $13,800 over 18 years, according to the Treasury, with the amount dependent on how the account ultimately performs. Are these accounts a good value? The Trump account is just one of several tax-advantaged accounts parents can set up for their children and many financial experts don't believe it is the best one. A Roth IRA can be a better option if the child has ordinary income to contribute to it, because Roth IRAs allow tax-free withdrawals after 59 ½ as well as withdrawals of contributions any time — penalty-free. A 529 account could also be a better choice, because money can be withdrawn tax-free if it is used for qualifying educational expenses. And even a Uniform Transfers to Minors Account (UTMA) could be preferable because it allows for penalty-free withdrawals for any reason or transferred to other accounts; plus, investment gains can be taxed at the more favorable capital gains tax rate. "Trump accounts provide a more limited and restricted tax benefit than existing saving incentives, such as 529 accounts," the Tax Foundation reports. Most parents are not maxing out these existing accounts, which provide more advantages, so it is unlikely that they'll be setting aside a full $5,000 into the Trump account either. Still, the $1,000 is there for babies born during the eligible years. So, if nothing else, parents should open the account to claim those funds and leave them to grow — extra cash from Uncle Sam is still extra cash. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
