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Technology Edmonton airport to lay off up to 40 per cent of workers as traffic drops 95 per cent

11:42  21 may  2020
11:42  21 may  2020 Source:   edmontonjournal.com

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Edmonton Airports announced Wednesday it was forced to reduce its workforce by up to 40 per READ MORE: Coronavirus: Calgary Airport Authority lays off one-third of staff as travel drops . “Passenger traffic has reduced by approximately 95 per cent and the airport is not expected to

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a person standing next to a building: File: The area in front of the United States bag drop at the Edmonton International Airport on Tuesday, March 17, 2020, in Edmonton. Edmonton International Airport will stop taking international flights starting Wednesday, the federal government has announced. © Greg Southam File: The area in front of the United States bag drop at the Edmonton International Airport on Tuesday, March 17, 2020, in Edmonton. Edmonton International Airport will stop taking international flights starting Wednesday, the federal government has announced.

Edmonton International Airport says it’s laying off 40 per cent of its workers because of reduced travel due to COVID-19.

The airport said Wednesday the pandemic has crippled airports and the aviation industry, reducing EIA’s traffic volume by around 95 per cent. Up to 100 unionized and non-union positions will be cut beginning in July. Last year, the airport saw 8.19 million passengers, but this year it expects only 2.7 million.

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She added that 95 percent of trading-business employees now work from home. The program is supposed to offer loans of up to million, but many recent applicants said the S.B.A. help line had told them that loans would be capped at ,000 per borrower.

CEO Tom Ruth told Postmedia the drop has been a “huge change to absorb,” and “today is a tough day for us.” In a Wednesday news release, he said he regrets that the jobs have been cut.

“Our employees are the foundation of our organization and our contribution to our communities, and we feel this loss profoundly,” Ruth said.

“Our critical operational and financial challenges demanded that we take this course of action to ensure we can continue to provide our region with key services including passenger, cargo and air ambulance flights.”

EIA says it doesn’t expect it will be able to return to 2019 passenger levels for at least three years.

Revenues have dropped by nearly 90 per cent in the past two months, forcing it to reduce labour costs. Layoffs are a last resort, according to EIA.

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“It is only after exhausting every other possible action that these steps were taken to protect the airport’s ability to continue operating and enable a future recovery,” reads a news release.

The airport says it has already taken “a series of aggressive cost-cutting measures” and looked at other alternatives, including voluntary unpaid leave and voluntary early retirement. It says it has cut capital spending by 75 per cent to cover only essential safety and regulatory projects. Non-labour projects were cut by $50 million.

CEO Tom Ruth told Postmedia in March no layoffs were planned.

— With files from Lisa Johnson

lboothby@postmedia.com

@laurby

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