The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Transportation / Storage Land, Water And Air Transportation Air Transport 51.10 - Passenger air transport
1,926 jobs Number of planned job losses
Announcement Date
4 November 2020
Employment effect (start)
4 November 2020
Foreseen end date
Description
TAP Airline, the Portuguese airline group, will cancel some aircraft orders and negotiate the return of some units. As part of its restructuring plan, the group TAP will dismiss 1,600 workers from different sectors until the end of the year. The main reason provided is related to company's over dimensioned staff in relation to the current COVID-19 crisis affecting the sector.
The company is now negotiating with unions, after the conclusion of the first phase of the restructuring plan.
Updated, 24/3/2021: After the negotiations between TAP Air Portugal and trade unions took place, 800 workers applied for the airline's voluntary measures programme. The highest application share is among the crew, but also about 100 professionals want to leave their job at headquarters. Department directors and middle managers are included. The deadline for voluntary redundancy will end on 31 March 2021.
The vast majority of requests – about 500 – relate to terminations by mutual agreement. This option will allow the workers to access unemployment allowance. For the remaining workers, other measures are planned, such as early retirement, part-time work, and unpaid leave.
Productivity and cost (measured by the fixed salary) are the criteria used in determining who will leave, as well as experience and seniority. Additionally, at the end of this month, the fixed-term contracts will not be renewed leading to the dismissal of more than 1,300 workers.
Updated, 27/08/2021: Since December 2020, a total of 1,302 workers left TAP Air Portugal. It represents a reduction of 6% in its workforce.
Updated, 08/07/2021: TAP Air Portugal has started the collective redundancy process of 124 employees, adjusted by around 94% compared to the initial number foreseen and imposed by the restructuring plan. These workers were distributed among the company's main professional groups, including 28 cabin crew, 35 pilots, 38 maintenance and engineering workers, and 23 workers at TAP Headquarters.
The collective redundancy plan was sent by Portugal to the European Commission in December 2020, yet the European Commission has not approved the restructuring plan yet.
Updated, 10/08/2021: The collective dismissal at TAP Air Portugal will cover 82 workers – a figure below the 124 expected – after 42 workers adhere to voluntary termination measures.
Updated, 14/09/2021: The number of workers covered for collective dismissal was updated to 78 workers, as four workers adheres to voluntary termination measures.
Eurofound (2020), TAP Air Portugal, Internal restructuring in Portugal, factsheet number 102416, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/102416.
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