by Jim Byers
Last updated: 3:45 PM ET, Tue March 24, 2020
The airline industry in Canada continues to reel from COVID-19, with nearly half of WestJet staff leaving and 600 Air Canada pilots laid off. Our TravelPulse operation in the U.S. reports that some airlines south of the border are drafting a plan to shut their doors completely until the crisis abates.
WestJet on Tuesday announced that 6,900 WestJetters will be leaving the organization, with 90% of those leaving voluntarily. The airline had approximately 14,000 employees before this announcement.
"Today, 6,900 WestJetters are receiving notices confirming early retirements, early outs and both voluntary and involuntary leaves," said Ed Sims, WestJet President and CEO. "This is devastating news for all WestJetters. The fact that we avoided a potentially worse outcome is testament to the spirit and selfless attitude demonstrated by our people, who have enabled WestJet to continue operating with a collective remaining workforce of 7,100."
Since the beginning of the COVID-19 crisis, WestJet implemented immediate cost-cutting measures including releasing more than 80% of its contract workforce, instituting a hiring freeze, stopping all non-essential travel and training, suspending any internal role movements and salary adjustments, pausing more than 75% of its capital projects and asking suppliers for a reduction or delay in payments. The airline's executive team took a 50% cut in pay, while vice-presidents and directors have taken a 25% pay cut.
Last week, WestJet issued a communication across the organization asking WestJetters to put up their hand to support the survival of the airline by selecting one of a number of options including unpaid leave of absence, early retirement, voluntary resignation (early out), reduced work week or reduced pay.
Said Sims, "It is through these WestJetters' sacrifices that we can preserve a core of people who will remain employed to prepare for the moment when the situation stabilizes, and we can look to rise again."
WestJet has also been working closely with its unions and employee associations who have collaborated to help achieve the necessary levels of voluntary leaves and salary cuts.
"We could not have achieved what was required without the support and collaboration of our union leadership and the leaders of our employee associations," Sims continued.
Click here for a video of SIms on the WestJet blog site.
WestJet is actively engaged with all levels of government in a shared commitment to minimizing impacts of this crisis and continues to press upon government the depth of the impact.
Air Canada's pilot union. meanwhile, said up to 600 of its members will go on unpaid leave in the coming months due to the COVID-19 pandemic,
In a story filed by Canadian Press, Captain Michael McKay, head of the Air Canada Pilots Association, says the union has agreed to a plan for a maximum of 600 pilots on furlough.
The 4,400 pilots have also agreed to reduced pay across the board and "simplified contract language" to allow pilots to retire earlier, CP reported.
McKay says a "precipitous drop in passenger demand and the challenging operating environment" have prompted the changes.
TravelPulse US says airlines in the United States are drafting a plan to temporarily stop flying entirely.
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