June 17, 2020 / 9:04 PM / a month ago

Canada's Enbridge says 800 workers take voluntary buyouts

(Reuters) - Enbridge Inc (ENB.TO), Canada’s largest pipeline operator, said on Wednesday about 800 employees have opted for voluntary buyouts, as the company tries to reduce costs to tackle the COVID-19 crisis and the global oil price shock.

In an email response to Reuters, Calgary-based Enbridge said it was offering employees the option to voluntarily select early retirement, severance, leaves of absence or part-time work.

“As a result of these actions, we won’t need to pursue company-wide layoffs at this time,” a company spokesperson said.

Enbridge is reducing base pay across its non-union workforce, with the board of directors and CEO Al Monaco taking a 15% cut and the company’s executive vice presidents taking a 10% cut.

A recent plunge in global crude prices due to a pandemic-driven drop in demand and excess supply has battered Canada, the world’s fourth-largest crude producer.

Last month, Enbridge said it has deferred C$1 billion ($737.57 million) in capital spending and cut costs by C$300 million, including salary cuts and retirements.

(This story corrects paragraph 4 to clarify that the pay-cut range of 10% to 15% is for Enbridge’s directors, CEO and EVPs, and not across the non-union workforce)

Reporting by Shradha Singh in Bengaluru; Editing by Maju Samuel and Devika Syamnath

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