TORONTO (AP) — Canada’s largest airline plans to lay off at least 20,000 employees because of the pandemic.
Air Canada says the layoffs will impact more than half of the company’s 38,000 employees. The airline says COVID-19 has forced it to reduce its schedule by 95% and it doesn’t expect normal traffic to return anytime soon.
The carrier says its workforce will be reduced by 50% to 60%. The move is effective June 7.
Air Canada announced in March it would lay off nearly half of its workforce under a cost reduction scheme. It proceeded to rehire some 16,500 laid-off flight attendants, mechanics and customer service agents in April under after the Canadian government announced a wage subsidy plan, but has not committed to maintain the program past June 6.
The Canadian Union of Public Employees representing Air Canada flight attendants said the airline is set to ask employees to reduce their hours, go on leave for up to two years or resign with travel privileges, the Canadian Press reported. There has been no comment from the union.
