Nav Canada announced on Tuesday that it will be reducing its workforce due to the continued impact of the coronavirus (COVID-19) pandemic. The company, which employed approximately 5,100 people before the pandemic, has now cut more than 720 jobs since the onset of the COVID-19 crisis. Nav Canada also noted that it will be closing its flight information centers in Winnipeg and Halifax and launching level-of-service reviews for a number of airports in the coming weeks.
“The aviation industry is contracting and faces profound changes,” said Nav Canada CEO Neil Wilson. “We continue to monitor the impact of the pandemic and will continue to take steps as they are necessary to align service with traffic levels while maintaining the integrity of the air navigation system.”
Prior to Tuesday’s layoffs, Nav Canada says it instituted a series of cost-reduction strategies including reducing management compensation, deferring retroactive wage increases with bargaining units and offering a voluntary retirement program. The company also participated in the Canadian Emergency Wage Subsidy program. Nav Canada is a nonprofit company that provides air traffic control, airport advisory services, weather briefings and aeronautical information services for Canadian domestic and international airspace.
Example 1 of why a private company shouldn’t do governmental functions and have to at least break even from fees.