Saturday, January 31, 2009

Air Canada to lay off 345 in downsizing effort


Air Canada will layoff 345 workers as it battles a drop in demand amid a worldwide recession. "Air Canada spokesman Peter Fitzpatrick said Saturday that the cuts will mostly affect its 5,700 flight attendants, beginning March 2," The Associated Press writes. "As part of the downsizing, Air Canada said it plans to reduce by one the number of flight attendants serving its business-class cabins on transatlantic flights," the Toronto Star reports. The Globe and Mail of Toronto describes the layoffs as "temporary," and says the airline could recall some of the attendants if sales pick up before the busy summer travel season.

As you might expect, Air Canada's flight attendants union decried the cuts. "We don't think Air Canada can shrink its way to greatness, and these new layoffs add to the service problems," Paul Moist, national president of the Canadian Union of Public Employees (CUPE) that represents the attendants, tells the Globe and Mail. He notes that Air Canada was hit with a rash of complaints following storm-related delays over the winter holidays.

Still, Moist tells The Montreal Gazette that the union's main concern is safety. "Cutting a flight attendant from a transatlantic route could potentially compromise safety," he tells the paper. "Air Canada can do this in the bounds of the law, but we think it is unwise and another sop to shareholders." Moist adds to the Globe and Mail that he thinks Air Canada management may be trying to set a harsh tone prior to upcoming contract negotiations. "Air Canada managers seem to be setting the stage for confrontation and disruption around bargaining," Moist is quoted as saying by The Canadian Press. "Our union will respond to these bullying tactics."

Regardless, another union spokesman tells Canadian network CTV the union was caught off guard by the latest layoffs "We're devastated," CUPE spokeswoman Cidalia Ribeiro tells CTV. "It was not anticipated." In other cost-cutting moves, the Globe and Mail writes "Air Canada plans to scale back flight frequencies or use smaller planes on certain routes … ."

Labels: ,