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Airlines will fail in weeks if governments do not intervene, IATA warns – Yahoo Canada Finance

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International Air Transport Association (IATA) Director General and CEO Alexandre de Juniac looks on during the IATA global media day on December 8, 2014 in Geneva. / AFP / FABRICE COFFRINI (Photo credit should read FABRICE COFFRINI/AFP via Getty Images)
FABRICE COFFRINI/AFP via Getty Images

Airlines around the world may collapse and fail if governments do not intervene soon, an industry group is warning.

Alexandre de Juniac, the chief executive of the International Air Transport Association (IATA) told reporters on a conference call Tuesday morning that many airlines do not have strong enough balance sheets to survive the crisis prompted by the coronavirus outbreak. Airlines everywhere are grappling with a severe decline in traffic as passengers stay home and governments impose strict travel restrictions.

“We need governments to act fast with financial relief to avoid a liquidity crisis, where (airlines) run out cash and almost half of the companies die in the coming weeks,” IATA CEO Alexandre de Juniac said from Geneva.

“We are now working hard to survive. We need government help.”

The warning from IATA, an industry group that represents 290 airlines from around the world, comes as WestJet Airlines becomeese the latest Canadian carrier to slash its workforce.

WestJet announced Tuesday that 6,900 workers – almost half of its employees – will leave the company. The Calgary-based airline said that 90 per cent of the employees are leaving voluntarily, through early retirements, buyouts and voluntary leaves.

“This is devastating news for all WestJetters,” the company’s chief executive Ed Sims said in a statement.

“The fact that we avoided a potentially worse outcome is a testament to the spirit and selfless attitude demonstrated by our people, who have enabled WestJet to continue operating with a collective remaining workforce of 7,100.”

WestJet has cut its domestic capacity in half and cancelled all international routes, including to the U.S., for 30 days. Air Canada has also slashed its capacity, suspending a majority of its international and transborder flights by the end of the month. So far, at least 15,600 people have been laid off from WestJet, Air Canada and Transat.

Airlines have cut capacity, grounded planes and laid off employees in order to reduce costs amid the drastic decline in revenue. Over the last several weeks, IATA has urged governments to step in and provide financial support to airlines.

IATA’s chief economist Brian Pearce said Tuesday that the group’s previous worst-case scenario estimate – that airlines would collectively lose $113 billion in revenue as a result of COVID-19 – was a gross underestimate.

“What this suggests now is we’ll see a revenue loss compared to 2019 of over $250 billion, which is something like 44 per cent down from 2019 levels,” Pearce said. “Clearly, this is a tremendous revenue shock.”

Pearce said that, outside of the world’s top 30 airlines, many companies are in a position where they can’t survive a prolonged stall in traffic. According to Pearce, the median airline has about two-months worth of cash or cash-equivalents on hand.

“There are lots of debt-servicing and fixed obligations for airlines to have to pay,” he said. “The challenge is that, before any recovery takes place, airlines may well run out of cash.”

Prime Minister Justin Trudeau has held discussions with the chief executives of Air Canada and WestJet, and has signalled that financial relief for the airline industry is coming. So far, the government has not announced any supports for the industry, despite repeated calls from airlines.

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Canada’s First Quantum agrees to higher payments at Panama copper mine

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The Panamanian unit of Canadian miner First Quantum Minerals has agreed with Panama’s government to increase royalty payments at its flagship copper mine, the company and the government said on Monday.

Minera Panama, which is majority owned by First Quantum Minerals, has agreed to pay $375 million a year to state coffers from the Cobre Panama mine, which it says is one of world’s largest copper producers.

“We accept the proposal of the national Government, while requesting that the necessary protections be provided in order to safeguard the continuity of the operation,” Minera Panama said in a statement.

The company did not immediately respond to a question about the size of the increase in royalty payments

Panama‘s government said President Laurentino Cortizo would give details of the agreement on Tuesday.

The company began negotiating a new contract with officials in September, after Cortizo promised to seek a fairer deal with better public benefits.

Toronto-based First Quantum began commercial operations at Cobre Panama, about 120 km (75 miles) west of Panama City, in 2019.

The mine contributes 3.5% of the country’s gross domestic product, according to government figures, and at full capacity can produce more than 300,000 tonnes of copper per year.

 

(Reporting by Elida Moreno, writing by Daina Beth Solomon, editing by Richard Pullin)

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U.N. chief urges business to help poor nations in ‘hour of need’

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U.N. Secretary-General Antonio Guterres appealed to business leaders on Monday to support developing countries “in their hour of need” with access to COVID-19 vaccines, help to combat the climate crisis and reform of the global financial system.

Speaking virtually to the World Economic Forum, Guterres said: “Across all three of these areas, we need the support, the ideas, the financing and the voice of the global business community.”

He said there has been a “global inability to support developing countries in their hour of need” and warned that without immediate action inequalities and poverty would deepen, fueling more social unrest and more violence.

“We cannot afford this kind of instability,” said Guterres, who began a second five-year term as U.N. chief on Jan. 1.

He has long been pushing for more global action to address COVID-19 vaccine inequity and climate change and for reform of the global financial system.

“We need a global financial system that is fit-for-purpose. This means urgent debt restructuring and reforms of the long-term debt architecture,” Guterres said.

The World Health Organization last year set targets for 40% of people in all countries to be vaccinated against COVID-19 by the end of 2021 and 70 per cent by the middle of this year.

“We are nowhere near these targets. Vaccination rates in high-income countries are — shamefully — seven times higher than in African countries. We need vaccine equity, now,” Guterres said.

He also warned of a lopsided recovery from the pandemic with low-income countries at a huge disadvantage.

“They’re experiencing their slowest growth in a generation,” Guterres said. “The burdens of record inflation, shrinking fiscal space, high interest rates and soaring energy and food prices are hitting every corner of the world and blocking recovery — especially in low- and some middle-income countries.”

 

(Reporting by Michelle Nichols, Editing by Franklin Paul)

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'I'm out of gas:' Leadership burnout on the rise as pandemic takes mental health toll – CTV News

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Workers turn to them for support, clients rely on them for answers, companies lean on them in times of crisis.

Yet as the pandemic stretches inexorably on, experts say the never-ending demands on business leaders are pushing some to the brink of burnout.

Stress, uncertainty and long hours are causing malaise among many managers. It’s a condition that — if left unchecked long enough — can manifest as exhaustion, disengagement, depression and burnout, they say.

“Leaders are under tremendous strain,” says Paula Allen, global leader and senior vice-president of research and total well-being at LifeWorks.

“When the pandemic first started, we saw the adrenalin kick in, decisions were made fast and work got done,” she says. “But it’s been relentless. Leaders are exhausted.”

It’s not just people in charge hitting a wall 22 months, five waves and multiple variants into the COVID-19 pandemic.

New research has found an extreme level of exhaustion among many Canadian workers from the bottom to the top. Many say they’re more stressed now than during initial lockdowns.

Essential front-line workers from nurses to grocery store clerks have faced innumerable risks of infection. Others face precarious employment without sick days or benefits. Some have lost their jobs altogether and struggle to pay rent and buy food.

In comparison to these hardships, some might be quick to dismiss the challenges of leaders.

Yet many have reported an increase in exhaustion and mental health concerns since the start of the pandemic.

Supervisors, low-level managers, small business owners and senior executives are grappling with increasing demands and surging work volumes.

Many are putting in extra hours to keep things running while also providing support and encouragement to workers.

“Business leaders are supposed to be cheerleaders,” says Mike Johnston, president and CEO of Halifax software company Redspace.

“But we’ve been trying to hustle and pivot and get through this for so long now. I’m out of gas.”

For some managers, the inability to offer more certainty and support to workers is what keeps them up at night.

“When you’re the leader of a group of people you want to have all the answers,” says Barry Taylor, director of operations for The Ballroom, a large entertainment venue in downtown Toronto.

“But you don’t and you just feel helpless and burnt out.”

Experts say late-stage pandemic fatigue is taking a toll on many managers, with some veering towards burnout.

The symptoms can include emotional exhaustion, detachment, loss of motivation and reduced efficiency — all of which can have a ripple effect throughout an entire workplace, they say.

“It’s exhausted leaders leading exhausted teams,” says Jennifer Moss, a Waterloo, Ont.-based workplace consultant and author of The Burnout Epidemic: The Rise of Chronic Stress and How We Can Fix It.

“Managers are trying to be stoic and demonstrate strength and certainty for their employees when many don’t feel that themselves.”

Pandemic burnout isn’t unique to leaders, but she says there are particular stressors facing those in charge.

“It can be more isolating at the top,” Moss says. “Senior leaders and managers can sometimes feel very alone.”

There’s also a perception that because people in management positions “earn the big bucks” they should be prepared to cope with the additional responsibility and stress, she says.

“We sometimes forget there’s a human behind that role and regardless of how much they’re being paid, how much they earn, it doesn’t fix the grief and the pain and the stress that they’re dealing with,” Moss says.

The perception that managers should demonstrate unwavering leadership and steadfast support of their workers can increase fears of seeking help, experts say.

“There’s a definite stigma,” says Chantal Hervieux, associate professor of strategy at Saint Mary’s University’s Sobey School of Business and director of the school’s MBA program and Centre for Leadership Excellence.

“There’s less acceptance for leaders to talk about mental health issues.”

Leaders are expected to be in control, have the answers and be supportive of their team members, she says.

Despite the near constant uncertainty and upheaval of the pandemic, those expectations have remained the same — or increased, Hervieux says.

“Canadian business leaders are working hard to keep things going but some are suffering,” she says. “They’re paying a mental health price and we need to talk about it.”

The challenge of trying to lead during the pandemic is backed up by research.

A survey by LifeWorks and Deloitte Canada released last summer found 82 per cent of senior leaders reported feeling exhausted.

The poll found the top two stressors were an increase in work volume compared to pre-pandemic levels, and the desire to provide adequate support for the well-being of staff.

More than half of those polled said they were considering leaving their roles.

“I’ve been chatting with other CEOs and there seems to be a shift,” Johnston with Redspace says. “There’s a number of founders looking to get out, to exit. The fun of the chase isn’t balanced against the stress of it.”

Still, despite some of the unique pressures facing leaders, burnout appears to be impacting all workers.

A new Bromwich+Smith poll conducted by Angus Reid found more than 70 per cent of people surveyed are worried about their physical and mental health, including sleep issues, fear of COVID-19 and burnout.

Another study by Canada Life found a high level of burnout among Canadian workers. The survey conducted by Mental Health Research Canada found more than a third of all working Canadians are feeling burned out.

This report by The Canadian Press was first published Jan. 17, 2022.

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