Air Canada to lay off 20,000 workers amid travel industry collapse

Advertisement

Advertise with us

MONTREAL - Air Canada will lay off more than half of its 38,000 employees next month as it grapples with the fallout from the COVID-19 pandemic.

Read this article for free:


By clicking the button above, an account will be created and you will begin to receive some of our recommended newsletters. You may opt out of any newsletter by visiting your Email and Communication Preferences page or by clicking "unsubscribe" at the bottom of any email.

or

Already have an account? Log in here »

To continue reading, please subscribe:

Digital Subscription

One year of digital access for only $1.44 a week*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles

*Billed as $5.77 plus GST every four weeks. After 52 weeks, price increases to the regular rate of $19.95 plus GST every four weeks. Offer available to new and qualified returning subscribers only. Cancel any time.

To continue reading, please subscribe:

Add Free Press access to your Brandon Sun subscription for only an additional

$1 for the first 4 weeks*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles
Start now

*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.

Hey there, time traveller!
This article was published 15/05/2020 (2361 days ago), so information in it may no longer be current.

MONTREAL – Air Canada will lay off more than half of its 38,000 employees next month as it grapples with the fallout from the COVID-19 pandemic.

The layoffs, which will take place June 7, will affect a minimum of 19,000 staff and could go as high as 22,800.

The country’s largest airline — along with its competitors — has seen demand for air travel evaporate amid ongoing border shutdowns and confinement measures, prompting Air Canada to ground some 225 airplanes and slash flight capacity by 95 per cent.

Air Canada planes sit on the tarmac at Pearson International Airport in Toronto on Wednesday, April 8, 2020. The union representing Air Canada flight attendants says the airline will now ask employees to work less, or not at all, as concerns over job security buffet the airline industry. THE CANADIAN PRESS/Nathan Denette
Air Canada planes sit on the tarmac at Pearson International Airport in Toronto on Wednesday, April 8, 2020. The union representing Air Canada flight attendants says the airline will now ask employees to work less, or not at all, as concerns over job security buffet the airline industry. THE CANADIAN PRESS/Nathan Denette

“We therefore took the extremely difficult decision today to significantly downsize our operation to align with forecasts, which regrettably means reducing our workforce by 50 to 60 per cent,” the airline said in an email Friday evening. “We estimate about 20,000 people will be affected.”

The airline made a similar decision in March to let go of nearly half of its workforce under a cost reduction scheme, only to rehire some 16,500 laid-off flight attendants, mechanics and customer service agents in April under the Canada Emergency Wage Subsidy — a program it has not committed to participate in past June 6.

To minimize the number of layoffs, Air Canada will ask flight attendants to slash their schedules, go on leave for up to two years or resign with travel privileges, according to an internal bulletin to members from the Canadian Union of Public Employees sent out Thursday night and obtained by The Canadian Press.

The memo states that CUPE is in discussions with Air Canada over continuing the federal wage subsidy.

“We know this news is not what any of us were expecting,” states the bulletin, signed by the president of CUPE’s Air Canada component and two other union officials.

“The reality is that COVID-19 has severely impacted the demand for air travel over the past few months and into the foreseeable future. As such, there is no denying that we are dealing with the largest surplus of cabin personnel in our history.”

Air Canada did not respond directly to questions about whether it would exit the wage subsidy program, which Ottawa recently extended through August.

The subsidy program that allowed employees — including 6,800 flight attendants — to be rehired last month covers 75 per cent of a worker’s normal hourly wages or up to $847 per week. The vast majority of those workers have stayed at home, however, as operations remain at a virtual standstill.

While Air Canada is not currently contributing to most worker wages, the airline has continued to pay into its pensions and benefits funds, a continuous cash drain at a company that lost more than $1 billion last quarter.

The Montreal-based company has been bleeding cash since mid-March and expects even fewer passengers between April and June.

Though traffic is expected to pick up somewhat before year’s end, Air Canada CEO Calin Rovinescu said last week the recovery will be slow, with at least three years of subpar earnings.

This report by The Canadian Press was first published May 15, 2020.

Companies in this story: (TSX:AC)

Report Error Submit a Tip

More Stories

The trick to attracting wee, treat-seeking ghosts and goblins on Halloween is to go all-in

Jen Zoratti 5 minute read Preview

The trick to attracting wee, treat-seeking ghosts and goblins on Halloween is to go all-in

Jen Zoratti 5 minute read Wednesday, Oct. 31, 2018

When I was a kid in the 1990s, I lived for Halloween.

My mom, a gifted seamstress, made all of my costumes. Deciding what I’d dress up as involved imagination and a trip to the fabric or craft store.

I loved flipping through the McCall’s patterns, and running my hands along the bolts of fabric that my mom would transform into Little Bo Peep, or Dorothy from the Wizard of Oz, or, one year, a Christmas tree — complete with the star on top. Old things were repurposed into new things.

Trick-or-treating was my... I don’t know, some sort of sports reference. The goal? Amass as much candy as possible. We’d troll the neighbourhood for hours, dragging snow-sodden pillow cases full of it. We’d target specific streets, lured mostly by the promise of full-sized chocolate bars.

Read
Wednesday, Oct. 31, 2018

Olympics Overnight: Canada reclaims gold in women’s hockey, Thompson wins silver in ski cross, and Kamila Valieva struggles in women’s free skate

Richie Assaly - Toronto Star, Toronto Star 8 minute read Preview

Olympics Overnight: Canada reclaims gold in women’s hockey, Thompson wins silver in ski cross, and Kamila Valieva struggles in women’s free skate

Richie Assaly - Toronto Star, Toronto Star 8 minute read Thursday, Feb. 17, 2022

Here’s what you missed overnight at Day 13 of the 2022 Beijing Olympics.

Read
Thursday, Feb. 17, 2022

Actor-director Cooper takes new approach to familiar tale

Randall King 4 minute read Preview

Actor-director Cooper takes new approach to familiar tale

Randall King 4 minute read Thursday, Oct. 4, 2018

TORONTO — In his self-directed version of A Star Is Born, Bradley Cooper plays a rock star named Jackson Maine.

Note the name: it marks the character as a member of a cinematic lineage that descends all the way to 1937.

That year, the first A Star Is Born was made, with Frederick March in the role of alcoholic actor Norman Maine. The name stayed in 1954, when James Mason took over the role of an actor who first nurtures the career of Judy Garland’s up-and-coming star Vicki Lester before his drunken shenanigans threaten to derail it. By 1976, Kris Kristofferson played the role of musician John Norman Howard, a rock singer with a musical stake in the ascent of Barbra Streisand’s Esther Hoffman.

Cooper, 43, remembered the Maine name, but also brought his own vision as a first-time feature filmmaker to the new version, which opens Thursday, Oct. 4, opposite Lady Gaga after the originally designated director, Clint Eastwood, dropped out. While actors might not want to see different interpretations of a role, Cooper embraced the opportunity to see all the past iterations.

Read
Thursday, Oct. 4, 2018

Affordable southwest Winnipeg attached two-storey home designed with families in mind

Todd Lewys 5 minute read Preview

Affordable southwest Winnipeg attached two-storey home designed with families in mind

Todd Lewys 5 minute read 2:01 AM CDT

Those in the market for a new entry-level home tend to have one main thought in mind. That thought, in most cases, centres on how much value a dwelling delivers — in both price and livability.

Spencer Curtis, owner of Hilton Homes, says he and his design team are acutely aware of how meticulously prospective buyers scrutinize entry-level new house options, which in most cases are attached two-storey models.

“That’s why we keep tweaking plans to make those homes better,” Curtis says. “This model, the Wilkens, is by far our most popular plan. We put a lot of thought into its design, and are always working at making it as functional and family-friendly as possible.”

Right from the get-go, the Wilkens distinguishes itself from other attached two-storey homes with its square footage.

Read
2:01 AM CDT

Olympics Overnight: Speedskater Blondin wins silver in the mass start, Bowman narrowly misses podium in halfpipe skiing, Jamaica returns to bobsled track

Richie Assaly - Toronto Star, Toronto Star 6 minute read Preview

Olympics Overnight: Speedskater Blondin wins silver in the mass start, Bowman narrowly misses podium in halfpipe skiing, Jamaica returns to bobsled track

Richie Assaly - Toronto Star, Toronto Star 6 minute read Saturday, Feb. 19, 2022

Here’s what you missed overnight at Day 15 of the 2022 Beijing Olympics.

Read
Saturday, Feb. 19, 2022

Doctor’s departure stressful for teen

Kevin Rollason 6 minute read Preview

Doctor’s departure stressful for teen

Kevin Rollason 6 minute read Sunday, Oct. 24, 2021

Morgan Walker is a typical teen — but only because a piece of his brain the size of a deck of cards was removed four years ago.

Walker, who had seizures multiple times a day before his surgery, fears other people might not be so lucky.

That’s because his surgeon, Dr. Demitre Serletis, is leaving the province and Health Sciences Centre. Serletis will start practising at the Cleveland Clinic in the new year.

“I was kind of shocked, but I understood why,” Walker said from his home in Brandon. “The government really hasn’t been respecting doctors.”

Read
Sunday, Oct. 24, 2021