Image: The Canadian Press
Bombardier President and CEO Alain Bellemare
Bombardier Inc. is laying off half of the 1,100 workers at its Thunder Bay, Ont., railway vehicle plant, according to a federal government source.
2 significant agreements in Ontario– for the Toronto Transit Commission trams and Metrolinx GO Transit rail automobiles– are slated to stop by the end of the year.
Local union president Dominic Pasqualino stated he fears more task losses are on the horizon beyond the initial 550 as the agreements unwind.
” This business is cyclical. Things increase, things decrease. But the important things is, it does not appear like things are going to return up,” he said in an interview.
” Now you’re taking a look at these individuals moving from Thunder Bay or operating in the logging market or the mining industry. It’s extremely disruptive.”
Ontario Transport Minister Caroline Mulroney validated layoffs were coming.
” Our federal government has actually talked to executives at Bombardier to reveal our dissatisfaction that their business has actually taken this step. We advise the company to deal with the provincial federal government to come to an agreement that would see tasks remain at the Thunder Bay plant,” Mulroney said in a statement.
Pasqualino laid part of the blame for a lack of new contracts on the province, however, saying that “our client is the government, it’s not individuals.”
He also blamed the Trump administration, which has actually backed Buy America-like stipulations requiring a minimum limit of local material.
Last month, Kenora-Rainy River MPP Greg Rickford said Ontario’s regional transportation company, Metrolinx, extended an offer for 36 extra rail cars and trucks to Bombardier.
Pasqualino stated he’s “pleased with 36, but we require 360.”
” We’re going to have an empty plant in 2020,” he said Tuesday. “We desire to keep the wheels turning. However it’s getting close.”
The regional transit company has actually likewise given Bombardier the choice to decrease production of the 63 staying rail automobiles slated for conclusion by year’s end.
A Bombardier spokeswoman declined to comment.
The transportation giant has been downsizing its aerospace and train operation for numerous years as it attempts to enhance profitability.
It is exiting the business airplane business after offering its turboprop and regional jet operations. Bombardier has actually likewise sold a bulk stake in its C Series airplane program to Airplane, which relabelled it the A220 Employment at its Quebec train manufacturing plant in La Pocatiere has also been threatened by a lack of new contracts.
The business fortified its finances in 2015 by selling a 30- per-cent stake in Bombardier Transportation to the Caisse de depot for US$ 1.5 billion.
In spite of the ownership, the Quebec pension fund manager granted a contract for its $6.3-billion electric train task to a consortium involving Alstom Transport Canada and a subsidiary of SNC-Lavalin instead of Bombardier. No regional material requirement was set by CDPQ Infra, the subsidiary of the Caisse leading the task.