REGIONAL – CAL to cut 42 Jamaican staff, as airline restructures

Source: Trinidad Express – CARIBBEAN Airlines Ltd (CAL) is planning to retrench 42 of its employees who are based at its hub in Jamaica, as part of its plan to streamline the airline’s operations, according to the Jamaica Observer.

The newspaper quoted Rudolph Thomas, the vice-president of the Bustamante Industrial Trade Union, which represents CAL workers in Jamaica, as saying the airline has been in consultations with the trade union.

“CAL’s management has communicated a need to realign its operations, which they have indicated was made necessary by the impact of the pandemic and the need to ensure capacity matches the reduced passenger demand,” Thomas said.

Eight of the airline’s 23 Jamaica-based maintenance workers and about 34 of 84 cabin crew members, including cabin crew, received notices on July 30 that they would be retrenched on July 30, the newspaper reported

The redundancy is expected to take effect on September 10 for most persons who are entitled to six weeks’ notice, and about August 28 for a few workers who had joined in 2014 and would only be entitled to four weeks’ notice pay, according to the Jamaica Observer.

“There is also a smaller group of 16 cabin crew members who will be retained under a special temporary lay-off proposed by the BITU to address any growth opportunities which may arise, and to treat with an operational uptick which is projected for the first quarter of 2022,” Thomas added.

The airline has advised that employees who are scheduled to be retrenched will not be required to work during the notice period.

In June, CAL announced that it proposed to retrench 450 employees, but in a statement on July 30, it revised that number to 280.

In the July 30 news release, CAL said it “has made significant progress on the previously announced consultation process for its proposed restructuring, undertaken as a result of the impact of the Covid-19 pandemic on its commercial activities.

“The airline has adjusted its planned strategy, fleet size and route network to reflect the decreased size of its future market, specifically, reduced passenger numbers, which is estimated to remain below 2019 levels for the next two to three years,” CAL added.

It said that during the past five weeks “extensive discussions” were held with employees and employee representatives in the various locations that Caribbean Airlines operates

“The process was constructive and as a result, the number of employees to be separated is now 280, significantly fewer than previously estimated. In addition, 99 employees will remain on temporary lay-off for an extended period,” CAL said, without further elaboration.

It said the impacted employees are being informed directly, with a 45 day notice period thereafter.

The government of Jamaica owns 16 per cent of CAL and the Government of T&T 84 per cent.

There has been no word as yet from either government on whether the government of Jamaica will share the costs of the retrenchment exercise in proportion to its equity stake in the airline.