Air Canada (TSX:AC) said it plans to rehire 16,500 laid-off workers using the federal government’s emergency wage subsidy.
Canada’s flagship carrier said in a news release that the majority of rehired workers will remain at home amid the collapse of global travel caused by the coronavirus pandemic.
Air Canada said it will apply for the “Canada Emergency Wage Subsidy” to retain or bring back workers who were let go under a cost reduction program that saw nearly half of Air Canada’s 36,000 employees lose their jobs as air traffic ground to a halt.
Depending on wage levels, many employees will receive more under the $71-billion federal wage subsidy program than they would get from employment insurance, and would maintain their health insurance and other benefits, Air Canada said.
The union representing Air Canada flight attendants confirmed that its 6,800 recently furloughed members would be able to come back on the payroll. However, union members making minimum wage might opt to stay on no-pay, off-duty status, which would allow them to apply for the “Canada Emergency Response Benefit” for people who’ve lost their jobs.
The layoffs of 15,200 unionized workers and 1,300 managers went into effect last Friday and were initially slated to last through May. In addition to the temporary workforce reductions, Air Canada announced March 31 that senior executives at the airline will forgo between 25% and 50% of their salaries for three months.