Air Canada is temporarily laying off over 16,000 of its employees and Managers, as a result of flight reductions due to the COVID-19 pandemic.
This affects 15, 200 unionized workers and 1300 Managers.
“It will help ensure that Air Canada can manage through this crisis that is affecting airlines everywhere. We believe that the temporary nature of these reductions, many achieved through voluntary programs, combined with other mitigation measures, will position us to restore regular operations as soon as the situation improves,” said Calin Rovinescu, President and Chief Executive Officer.
Rovinescu, and Michael Rousseau, Air Canada’s Deputy Chief Executive and Chief Financial Officer, have agreed to forgo 100% of their salary.
Senior Executives will forgo between 25 to 50 per cent of their salary while members of Air Canada’s Board of Directors have agreed to a 25 per cent reduction.
All other Air Canada managers will have their salaries reduced 10% for the entire Second Quarter.
Air Canada intends to continue to serve a small number of international and U.S. trans-border destinations from select Canadian cities after April 1, 2020 in addition to a reduced network in Canada.
The airline will also continue to operate special international flights in collaboration with the Government of Canada to bring Canadians home.
Air Canada will also continue some cargo-only flights to ensure essential goods, including medical supplies, get where they need to go.
Layoffs are effective on or around April 3.
