Travel trade workers face redundancies and a “bonfire” of terms and conditions as furlough ends today (Thursday), the TSSA union warned.
The Transport Salaried Staffs’ Association, which represents staff at Eurostar and travel companies, called on the government to extend a bespoke package of support to the industry which is still severely impacted by the Covid-19 pandemic.
The Coronavirus Job Retention Scheme was set up at the outset of the crisis but has gradually been tapered down and comes to an end today.
The Resolution Foundation think-tank that focuses on people with low incomes estimated that as many as 46% of travel agency and tour operator employees were furloughed in July and 51% of air transport workers.
A survey by Advantage Travel Partnership from September 13 to September 26, covering the period when the changes to international travel restrictions were announced, found most members saw the end of furlough as their “biggest challenge” – but that the majority had found ways to stave off redundancies.
But TSSA general secretary Manuel Cortes said: “The end of furlough is going to spell disaster for workers in the travel trade.
“Travel companies have struggled through two summers of restrictions on travel, whilst the government has ignored our calls for extra assistance. Now, everyone in travel trade will be paying for the lack of support from government.”
He pointed to Eurostar and its ancillary industries as being particularly badly hit, as the government has refused to give it the same bailout handed out to other train companies.
“Sadly, faced with a steep increase in wage bills from October 1, and no return to normal, travel companies will make savings to staffing costs in other ways just to save their business,” Cortes added.
“This will inevitably mean redundancies in the run-up to Christmas, whilst other workers will be forced to pay for saving their jobs by accepting cuts to their hours, and a bonfire of their terms and conditions. All because the government is stubbornly refusing to support the industry hit worst by the pandemic.
“This really is the last chance for the travel trade. The government needs to seriously reconsider their position, get around the table with the industry and unions and come up with a support package for the travel trade sector before we see more major employers go the way of Thomas Cook.”
Abta warned that companies in the sector still face “extreme difficulties” because of continued travel restrictions.
The travel association also called for sector-specific support for smaller firms in particular, who have lost two summers of sales, as well as those which specialise in destinations still subject to red list curbs.
“The government needs to look at how it can support these businesses – particularly as the furlough scheme comes to an end – through a package of tailored financial support, including extending business rates relief and a specific grant scheme for travel companies,” a spokesperson told the BBC.