Some 400 positions will be eliminated in Ontario, 500 in Mexico and 40 in the United States; the rest of the layoffs will be made elsewhere in the world.
June 5, 2020 7h32
Updated at 17h16
Bombardier will eliminate 2,500 jobs this year, including 1500 in Quebec
The canadian Press
MONTREAL —in Spite of further job losses at Bombardier, Quebec always seems inclined to fly to the rescue of the company, but the mounting will be different from the one which lost $ 1.3 billion to taxpayers in the C Series – now called A220 -said the prime minister François Legault.
Pass to Orford in the eastern Townships, Friday afternoon, he listed his conditions by revealing that the “total amount” of the investment made in 2015 by the liberal government of Philippe Couillard in the program of the aircraft is now controlled by Airbus “should be cancelled”.
“Quebecers have lost $ 1.3 billion due to the liberal Party of Quebec, because of the way the transaction was structured”, has launched Mr. Legault, in press.
The State of québec holds 25 % of the A220 since February given that Bombardier has left the adventure. In the wake of the transaction, announced last February, Quebec had devalued to $ 600 million of its investment.
On Friday, Mr. Legault has gone much further by saying that the sum would be totally lost. At the head of the Coalition avenir Quebec when it was in opposition, had repeatedly criticized the investment in the C Series.
Bombardier will eliminate 2500 jobs this year, more than 11 % of the workforce of its division of aviation, at the time the business jet segment, to which the company performs its focus, is shaken by the turbulence caused by the COVID-19.
It is Quebec that is taxable the more, with 1,500 job losses, against 400 other Ontario. Some 500 positions will be eliminated in Mexico, 40 in the United States and 60 elsewhere in the world. Half of the departures will be by the end of the month.
After his Economy minister Eric Girard, who had shown “open” for assistance, Mr. Legault has not closed the door on a possible support, which will be conditional on guarantees that the investment in the C Series did not.
“If we were to invest, it would make sure not to repeat those errors,” said Mr. Legault. To invest in the entire group, to have guarantees on the number of jobs, because what we are interested in (…) these are the jobs.”
While the policy of remuneration of the bosses of Bombardier has aroused the ire of the political class and the population more than one occasion, financial assistance would also be accompanied by conditions surrounding the bonuses, salaries and dividends, said the prime minister.
There is about a month, the president and chief executive officer of the aircraft, Eric Martel, in office since 6 April, had hinted that he could knock at the door of governments in order to get a “extra support” if the effects of the pandemic continued to be felt.
The layoffs at Bombardier are in addition to the bad news that hit the aerospace industry in quebec since the beginning of the pandemic. More than 1000 posts have disappeared as a result of cutbacks at Pratt & Whitney Canada, Héroux-Devtek, CAE and Airbus Canada.
After having seen its manufacturing activities affected by the new coronavirus, the multinational will adjust its production because it expects a decline in deliveries of the order of 30 % over 12 months due to the pandemic.
“It is very regrettable to have to resort to these reductions, explained the president of Bombardier Aviation, David Coleal, in an internal note sent to employees that The canadian Press was able to review. However, we have reached the maximum of our ability to maintain our employment levels before the crisis.”
The division of business jets the company is very present in Québec, where the one carries out the assembly of the family of the Challenger and the finish of the Global 7500, the device on which put the company to ensure its growth. There are more than 10 000 employees. The factories in Dorval and the montreal borough of Saint-Laurent will be affected.
The company did not want to move forward on its new rate of fire, limiting themselves to say that it will provide more details on 6 August with the unveiling of its second-quarter results. The restructuring will result in a charge of US $ 40 million).
“For Bombardier, we anticipate a decrease of 35 % of shipments in 2020, excluding the Global 7500 or a drop of 20 % including the device,” said analyst Benoit Poirier of Desjardins capital Markets, in a note sent to investors.
Last year, the company has made 142 deliveries of Global, Challenger and Learjet, five more in 2018. Before putting its forecasts on the ice because of the COVID-19, the aircraft manufacturer, provided 160 deliveries this year.
Hard to swallow
For the Machinists union, which represents 717 of employees affected, the decision by Bombardier is “incomprehensible”. In his opinion, the company would have been able to turn to the wage Subsidy emergency in Canada, as it has done for the months of April and may, in order to avoid layoffs.
“This is a time where the company would have been able to help the workers, explained the coordinator quebec David Chartrand, during a phone interview. There is a cost to the company (such as group insurance and pension plan), but part is absorbed by the State.”
When asked about this, a spokesman of the aircraft manufacturer, Mark Masluch, said that the layoffs were part of an adjustment to long-term workforce. The company will continue to rely on the emergency grant for its active workers.
Uniforms and equipment the estimates that 390 of its members to the Global completion centre 7500 could be affected starting in September. The union hopes to be able to avoid dismissals by, for example, to early retirement.
On Monday, Bombardier had completed the sale of its regional jets Mitsubishi Heavy Industries for $ 550 million USD, marking its departure from the commercial aviation sector after the sale of its stake in the A220 earlier this year. The company has also entered into an agreement with Alstom for him to sell its rail division.