(UPDATE: March 30 @ 3:30 pm) – There's no doubt the airline industry has been hit hard by the COVID-19 pandemic and the latest move from Air Canada certainly showcases that.

The company placing 15,200 members of its unionized workforce on Off Duty Status and placing 1,300 managers on a leave of absence.

"The unpredictable extent and duration of the Covid-19 pandemic requires a significant overall response," said Calin Rovinescu, president and CEO of Air Canada. 

"To furlough such a large proportion of our employees is an extremely painful decision but one we are required to take given our dramatically smaller operations for the next while."

He added that these moves will help ensure Air Canada can manage this crisis and come out the other side with the ability to ensure these are only temporary measures.

The company is also implementing a company-wide cost reduction and capital deferral program, targeting at least $500 million.

Rovinescu, along with Air Canada CFO Michael Rousseau, have both agreed to forego 100% of their salary, while other senior executives and board members will be taking temporary paycuts as well.

(Original story: March 20 @ 1 pm) – The union representing Air Canada flight attendants has responded to the news that Air Canada has been forced to lay off 5,000 employees this week.

Upon learning of the layoffs, the union said it was “deeply saddened.”

Photo Credit: Air Canada

“This has been the most challenging time any of us will likely ever experience as flight attendants,” said Wesley Lesosky, President of the union that represents roughly 10,000 flight attendants at Air Canada and Air Canada Rouge. 

“Our members have been on the front lines of this crisis since day one, and it has been a tough journey ever since. Our hearts go out to all of our members, especially those who fell sick while doing their job.”

It affects around 3,600 Air Canada flight attendants and another 1,549 with Air Canada Rouge, and doesn’t come as a major surprise given the significant reduction in flights due to COVID-19 restrictions.

Fortunately, the layoffs are temporary and currently effective until April 30, which means the employees are eligible to collect employment insurance and access benefits.

The union pledged to assist laid-off members with their next steps.