WestJet says it has halted its push for a labour code exemption that would have facilitated mass layoffs. The carrier’s aviation security manager told the House of Commons health committee Monday the airline had revoked its request for exemption from Canada Labour Code provisions that require 16 weeks’ notice ahead of a mass layoff, which refers to 50 workers or more.
Jared Mikoch-Gerke said WestJet has laid off some 9,000 of its 14,000 employees since the COVID-19 pandemic struck.
The crisis has seen the Calgary-based company park two-thirds of its fleet after border shutdowns and tanking travel demand prompted it to suspend most routes – including all international trips – in late March, though it plans to resume several flights between Canada and the US at the end of the month.
An Air Canada senior executive said Monday the carrier has not withdrawn its application to the federal labour minister for an exemption, but has received no response so far.
Air Canada has opted not to reapply for the federal government’s Canada Emergency Wage Subsidy program – now extended until Aug. 29 – for most employees.
“We chose to not continue with it,” Ferio Pugliese, Air Canada’s vice-president of government relations, told the health committee Monday.
“There’s still an extensive expense that comes along with payroll taxes, pension and benefit costs,” which are not covered by the subsidy, he said. The continuous cash drain was adding further strain to a company that lost more than $1 billion last quarter and continues to bleed about $20 million per day.
The program covers 75 percent of a worker’s normal hourly wages or up to $847 per week. For airlines, however, the vast majority of those workers have stayed at home, as operations remain at a virtual standstill.
The Montreal-based airline, which has laid off more than 20,000 staff, has joined with other companies from across industries in asking the prime minister and premiers to ease restrictions on international and interprovincial travel.