Air Canada reduces workforce by more than 50% in 2Q2020

Air Canada announced (31-Jul-2020) a workforce reduction of approximately 20,000 employees in 2Q2020, accounting for more than 50% of staff. These reductions have been achieved through layoffs, terminations of employment, early retirements and special leaves. A provision of CAD76 million (USD56.7 million) was recorded due to these measures, with CAD6 million (USD4.5 million) in payments having been made to date. The provision includes the estimated notice of termination and severance costs under Air Canada's collective agreements and the Canada Labour Code. The carrier also recorded CAD36 million (USD26.9 million) in termination benefits and curtailments related to the pension and benefit obligations. [more - original PR]