financetom
Business
financetom
/
Business
/
Productivity at Airbus plant in Canada slips as workers mull new contract offer
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Productivity at Airbus plant in Canada slips as workers mull new contract offer
Mar 29, 2024 2:42 PM

MONTREAL (Reuters) - Productivity has slipped at a Montreal-area Airbus factory trying to ramp up assembly of the planemaker's smallest commercial jet, as workers consider a new contract offer, according to sources and a union memo sent on Friday.

Airbus and union negotiators failed to reach a negotiated deal this week following intensive talks, but a second company offer will be considered by the estimated 1,300 workers on April 7, according to the memo seen by Reuters.

Details of the new offer, made after workers overwhelmingly rejected an earlier one this month, were not available.

Assembly workers at the plant, which makes A220 jets, were recently told by the company that overtime work was cut and productivity was down due to the talks and supply chain snags, three sources who spoke on condition of anonymity told Reuters.

The European planemaker is trying to grow production of the money-losing A220 jets, which have roughly 110 to 130 seats, to a combined 14 planes a month in 2026, spread between the factory in Mirabel, Quebec, and a plant in Mobile, Alabama. That would be up from six a month in December 2022, the latest publicized rate.

"Despite a certain slowdown in productivity felt recently, we are maintaining our overall ramp-up target of 14 aircraft a month in 2026," a spokesperson for Airbus's Canadian division said in a statement. "We have taken measures to recover efficiency."

The International Association of Machinists and Aerospace Workers union (IAM), which wants higher wages and better conditions for the workers at the Airbus facility in Mirabel, said earlier this month it would start pressure tactics that would slow production after workers gave strike authorization.

Unions have recently capitalized on tight labor markets and high inflation to win hefty contracts at the bargaining table, with airline pilots, autoworkers and others scoring big raises in 2023.

The Airbus talks in Canada are being watched by IAM leaders in Washington state, where Boeing's production workers want wage increases exceeding 40% over three to four years, a spokesperson for the union's U.S. local there said.

In Montreal, the local representing the Airbus workers said negotiations are continuing, without offering further details.

Workers have held noisy disturbances at the factory in Mirabel.

"Recently, some employees have put forth their point of view and we heard them," Airbus said. "We remain committed to reconciling the interests of our employees with the economic imperatives of the A220."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Market Chatter: Paramount Global Asked by Activist Investor to Consider Apollo Offer
Market Chatter: Paramount Global Asked by Activist Investor to Consider Apollo Offer
Apr 12, 2024
01:32 PM EDT, 04/12/2024 (MT Newswires) -- Paramount Global ( PARAA ) was asked by activist investor Barington Capital Group to end exclusive talks with David Ellison and consider rival offers, including one from Apollo Global Management ( APO ) , Bloomberg News reported, citing a letter to the company's board it reviewed. (Market Chatter news is derived from conversations...
Unity Bancorp Q1 Earnings Decline, Revenue Rises
Unity Bancorp Q1 Earnings Decline, Revenue Rises
Apr 12, 2024
01:20 PM EDT, 04/12/2024 (MT Newswires) -- Unity Bancorp ( UNTY ) reported Q1 earnings Friday of $0.93 per diluted share, down from $0.96 a year earlier. Three analysts polled by Capital IQ expected EPS of $0.90. Revenue, which is expressed as the sum of net interest and noninterest income, was $25.6 million for the quarter ended March 31, up...
Sector Update: Consumer
Sector Update: Consumer
Apr 12, 2024
01:24 PM EDT, 04/12/2024 (MT Newswires) -- Consumer stocks were in the red Friday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) dropping 1% and the Consumer Discretionary Select Sector SPDR Fund (XLY) falling 1.8%. In corporate news, Johnson Controls ( JCI ) shares slumped 0.5% after it said Friday that its Tyco Fire Products unit has agreed...
BRIEF-Us Steel Shareholders Voted In Favor Of A $14.1 Billion Takeover Offer By Nippon Steel- Bloomberg News
BRIEF-Us Steel Shareholders Voted In Favor Of A $14.1 Billion Takeover Offer By Nippon Steel- Bloomberg News
Apr 12, 2024
April 12 (Reuters) - Nippon Steel Corp ( NISTF ): * US STEEL SHAREHOLDERS VOTED IN FAVOR OF A $14.1 BILLION TAKEOVER OFFER BY NIPPON STEEL- BLOOMBERG NEWS Source text: https://tinyurl.com/ch52unav Further company coverage: ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved