Bombardier agrees new contracts for 1,800 union members
Canadian Bombardier employees who are part of the International Association of Machinists and Aerospace Workers union (IAMAW) have agreed to accept an average pay increase of up to 18.5% in total over the next five years.
The five-year agreement means the 1,800 employees based in Québec will receive an average increase of 6.5%, retroactive to December 4th 2021 in the first year. The second and third years will deliver an annual uplift of 3%, while the fourth and fifth years will be aligned with the consumer price index plus 0.5%, with a minimum increase of 1.5% and a maximum hike of 3%. The new contract will remain in effect until December 2026.
Bombardier said the company is pleased with the results and is “committed to working closely” with the union members to “maintain its position as an industry leader”.
It continued: “Bombardier firmly believes that the success of the company resides in the quality of its products as well as in its experienced and engaged employees.”
As part of the deal, no work will be outsourced during the next five years and work assigned to subcontractors will be reassigned to the union staff. One contentious topic that was not resolved was the question of retiree’s pensions.
Bombardier will also reduce overtime during layoff periods to facilitate the rapid return of some laid off workers. Bombardier previously announced in June 2020 that it would cut its workforce by 2,500 employees within the year, in response to the drop in orders caused by the pandemic. Most of the jobs affected were in the manufacturing operations based in Canada. In October of the same year, the company streamlined its senior team and axed the role of aviation president, held at the time by David Coleal.
Eric Rancourt, union spokesperson, IAMAW said Bombardier will have to gain back the trust of its workers over the course of the deal. “Despite the fact that the offer was accepted, Bombardier will have work to do over the next five years to regain the trust of workers and rebuild a sense of belonging,” he said.