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Be the first with the news that moves the market- International tour operator, Transat AT (TSX:TRZ) is rehiring 4,000 employees, after laying off most of them earlier this year
- Following the temporary suspension of flights during the COVID-19 pandemic, the company laid off 80 per cent of its staff
- However, a new bill passed by Canada’s Federal Government will allow the company to rehire its previously furloughed staff
- Returning employees will receive around 75 per cent of their salary, and will not have to work
- Transat AT (TSX:TRZ) is up 3.7 per cent, with shares trading at $8.68 with a market cap of 328.4 million
International tour operator, Transat AT Inc (TSX:TRZ) is rehiring 4,000 employees, after laying off most of them earlier this year.
In late March, the company temporary laid off of 70 per cent of its staff, after COVID-19 forced the suspension of its flights. Further staff reductions in recent weeks meant the company has only retained around 20 per cent of its staff.
However, a new bill passed by Canada’s Federal Government will allow the company to rehire its previously furloughed staff.
Staff that return to the company’s books will not have to work. Through the government initiative, the employees will receive around 75 per cent of their salary, up to C$847 a week.
The company hopes that retaining the staff will make recommencing operations easier when travel bans lift.
Transat President and CEO, Jean-Marc Eustache, appears pleased to be returning staff to the company.
“Temporarily laying off a large majority of our employees was a necessary but heartbreaking decision.
“We are very pleased today to be able to offer them this opportunity. Our employees are Transat’s greatest asset. I hope this will bring them some comfort in the face of a situation that is so distressing for all of us,” he said.
Since COVID-19 hit the world economy in February, the company’s market share has fallen more than 40 per cent.
Similar stories have been seen throughout the entire aviation industry. Late last month, Air Canada’s share price hit its lowest point since 2016, falling almost 65 per cent since January.
Transat AT (TSX:TRZ) is up 3.7 per cent, with shares trading for $8.68 at 3:07pm EST.
