Transat must cut jobs before Air Canada purchase

Transat must cut jobs before Air Canada purchase
Transat must cut jobs before Air Canada purchase

The revised agreement that Air Canada and Transat have just signed provides that the Quebec tour operator must put in place a “workforce reduction plan” before the transaction closes.

• Read also: Pierre Karl Péladeau is still interested in Air Transat

• Read also: Quebec ready to help an investor other than Air Canada

• Read also: Millions in bonuses for Transat executives

• Read also: Air Canada agrees for $ 190 million with Transat

This can be read in clause 4.2 (4) of the arrangement agreement, which was made public on Wednesday in English only. This is a provision that is rarely found in a business acquisition contract.

“We are in a situation that is not usual either, that is to say that we are in a situation where, anyway, layoffs, we think there will be. So for us, this clause […] is not an additional constraint, ”said Thursday at Journal Christophe Hennebelle, Vice-President of Human Resources and Public Affairs at Transat.

Mr. Hennebelle recalled that last month, the Montreal company indicated that it would probably have to lay off 2,000 workers by the end of the year because of the devastating effects of the coronavirus pandemic on the airline sector. This represents 40% of Transat’s workforce.

“Obviously, the extent of this plan, that is to say the precise number of layoffs, will depend on the situation when we are going to do it, but it is certain that today, there is no there is no scenario where there are no layoffs, unfortunately, ”said Christophe Hennebelle.

He assured that Air Canada had not exerted pressure for Transat to prepare a plan to lay off 2,000 workers.

“It’s a decision by Transat, absolutely,” he insisted.

It should be noted that most of the 2,000 positions that risk being permanently eliminated are occupied by employees who have already been laid off. Two-thirds of Transat’s workforce are currently unemployed.

Air Canada did not respond to a request for information from Journal about the new arrangement agreement.

The latter also provides that Transat must regularly inform Air Canada of its level of indebtedness. Remember that Air Canada has just given permission to Transat to borrow up to $ 250 million to replenish its coffers, which the health crisis has seriously stripped.

Under the new agreement, Transat shareholders will receive $ 5 per share, for a total of $ 190 million. In the agreement reached last year, before the pandemic, it was about $ 18 per share, or $ 720 million in all.

Mr. Hennebelle maintained Thursday that despite difficult circumstances, the transaction remained the best avenue for Transat employees.

“We believe – and this is one of the reasons we entered into the transaction – that the long-term employment prospects are better with a transaction than without a transaction,” he said. But in the short term, it will involve layoffs.


  • Before the pandemic 5,100 people
  • At the height of the crisis 800 people
  • Currently 1700 people

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!

These were the details of the news Transat must cut jobs before Air Canada purchase for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at en24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT FBI director warns that Chinese hackers are preparing to ‘wreak havoc’ on US critical infrastructure