LONDON City Airport has announced plans to cut up to 239 jobs following the coronavirus pandemic.
The city-based airport said the move comes as part of “crucial restructuring plans” to reduce its costs.
The move could affect 35% of people employed full-time by London City, although part-time staff may also be impacted by today’s announcement.
A spokesperson confirmed to The Sun that the proposed restructure will be across its entire workforce, from director grade to junior staff.
The airport currently employs around 739 staff, including both full-time and part-time workers.
It comes as London City confirmed passenger numbers remain “well below” its 2019 levels, with lower footfall expected to continue into the winter months.
Coronavirus job cuts in the travel industry
THE travel industry has been severely impacted by the coronavirus crisis.
As less people head abroad, many airlines have announced plans to cut jobs to offset their profit losses.
- Gatwick has announced plans to cut 600 jobs, around 25% of its workforce.
- Heathrow is asking 2,500 workers to accept hefty pay cuts or half may lose jobs.
- British Airways announced plans to cut around 12,000 members of staff. In addition, the airline wants to switch remaining workers onto lower paid contracts.
- Ryanair confirmed that up to 3,250 jobs could be slashed while staff face 20 per cent pay cuts.
- TUI warned 8,000 jobs could go, which would amount to 30% of its entire workforce.
- easyJet announced plans to axe around 5,000 jobs. The airline is also shutting its bases at London Stansted, Southend and Newcastle Airport.
- Virgin Atlantic said it plans on cutting 3,150 jobs after owner Sir Richard Branson said the airline could fall into adminstration without a government bailout.
- Jet2 is making 102 pilots redundant after talks aimed at saving jobs failed.
- Flybe collapsed into administration on March 5. The airline had been losing money for several months but coronavirus was understood to have had a severe impact on bookings.
The airport suspended flights on March 25, with it resuming trips almost three months later on June 21.
Staff who were unable to work during this time were paid through the government furlough scheme, with London City topping up wages to 100%.
Fewer people are going away due to ongoing travel restrictions and quarantine measures that have been put in place.
It means holidays have been thrown into chaos, with the government warning that more countries could be added to their quarantine list if coronavirus cases continue to rise.
The airport said it has already cut all non-essential spending, including putting a temporary pause on a £500million development programme last month.
The development programme included plans for a new terminal extension.
London City confirmed in its update today that a consultation process has been started with affected staff.
What are my redundancy rights?
BEFORE making you unemployed, your employer should still carry out a fair redundancy process.
You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you’ve been working somewhere for at least two years.
How much you’re entitled to depends on your age and length of service, although this is capped at 20 years. You’ll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won’t be entitled to a payout if you’ve been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
The airport currently has flights scheduled to 17 destinations.
London City is the latest business in the travel industry to propose redundancies or pay cuts as the sector continues to be crippled by holiday restrictions.
Gatwick has announced plans to cut 600 jobs, around 25% of its workforce, while Heathrow is asking 2,500 workers to accept hefty pay cuts or half may lose jobs.
Airlines have also been placed under pressure due to Covid-19.
TUI have also confirmed proposals to cut 8,000 roles.
Robert Sinclair, CEO of London City Airport, said: “It is with huge regret that we are announcing this restructuring programme today and our thoughts are with all of our highly valued staff and their families.
“The aviation sector is in the throes of the biggest downturn it has ever experienced as a result of the pandemic.
“We have held off looking at job losses for as long as possible, but sadly we are not immune from the devasting impact of this virus.”
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It comes after the World Travel & Tourism Council warned three million jobs are at risk of disappearing in the travel industry.
At the start of the month, Hays travel announced 878 employees out of 4,500 could lose their jobs.
STA Travel UK has gone out of business leaving thousands of customers chasing refunds.