Air Canada to cut at least 20,000 jobs amid collapse of air travel – USA DAILY NEWS

Air Canada to cut at least 20,000 jobs amid collapse of air travel

Air Canada said on Friday it has decided to reduce its workforce by up to 60 per cent as the airline tries to save cash amid the COVID-19 pandemic and right size its operations to the level of traffic expected in the mid-to-longer term.

The job cuts will be effective June 7 and could affect between 20,000 and 22,800 workers, according to an internal company email seen by the Canadian Press. The downsizing will reduce the airline’s workforce by 50% to 60%, the report said.

The airline was working with unions to implement these measures, it said in an emailed statement.

The Canadian Union of Public Employees (CUPE) said it is in the final process of negotiating mitigations and other matters with Air Canada and has no further comment at this time.

The union, which represents 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.

The health crisis has brought a virtual halt in air travel, leading to an unprecedented number of flight cancellations globally and forcing airlines to book hefty losses.

© Thomson Reuters 2020