MONTREAL — Transat A.T. Inc.
is preparing to lay off up to 80 workers as the tour operator struggles to turn its finances around, according to a preliminary notice sent to the Quebec government. Over the course of the year, the company has felt the headwinds of stiff competition, engine recalls and the threat of a union strike, which together conspired to drain more money from the struggling outfit. Quebec labour rules require some companies to submit potential layoff figures for provincially regulated jobs, even if the cuts never come to pass.
In a notice to the province’s employment department, Transat says the layoffs could be effective by Nov. 1, specifying in an email that they would not apply to pilots, flight attendants or other federally regulated roles. In response to inquiries from Profession Voyages , part of The Travelweek Group, Transat spokesman Andréan Gagné said: “This notice comes from a preventive measure on the part of Transat.
In connection with the implementation of a global optimization plan announced last month, the approach provides, among other things, the review of our organizational structure. The purpose of this notice was to comply with the regulations with the Ministry of Employment (required deadline), in the event of layoffs.” In its first three quarters, Transat reported a combined net loss of $155.
3 million versus a loss of $28.5 million in the same period a year earlier. With file from The Canadian Press.
