Plant Stays Open And In Toronto

There wasn't much question about the outcome when workers at Bombardier Inc.'s plant in Toronto voted on whether they'll accept a lesser deal from the aerospace company and, hopefully, keep their jobs. Overwhelmingly, the workers agreed over the weekend to a new labor contract - one they hope will keep the factory open in return for greater workforce flexibility, a union official said.

The three-year agreement goes into effect immediately. Under terms of the agreement, the company's Toronto turboprop plant will remain open for at least three more years.

Bombardier and the Canadian Auto Workers Union reached a tentative agreement on Friday after two months of negotiations in which the company threatened to move the plant to Montreal or outside of Canada.

Union officials said 88 percent of production workers and 89 percent of trades workers, members of CAW Local 112, voted for the deal, with 87 percent of office and technical workers in Local 637 in favor.

Bombardier, the world's third-largest maker of civil aircraft, agreed to keep the Dash 8 turboprop production lines at its Downsview plant in Toronto. That plant also makes the Global Express business jet, or will until the end of the new labor contract in June 2006.

Talks: Pressurized

"We went into bargaining under extraordinarily difficult circumstances with the orders down or canceled as airlines in the U.S. declare bankruptcy and the threat of war depresses travel," CAW president Buzz Hargrove said.

"We were able to protect income and jobs -- the Global Express and Dash 8 production will remain at the facility. As well we increased the retirement incentive substantially to allow senior people decent retirement and protect the jobs of junior workers," Hargrove said.

A Disappointment For Ireland On St. Paddy's Day

The Canadian transport group had said it needed to lower labor costs or move production to Montreal or Belfast, Northern Ireland, and lay off 1,200 union workers out of about 3,000 employees at the Toronto plant.

The union said Bombardier could reduce its costs through increased productivity following the union's concessions on worker flexibility.

Bombardier announced earlier this month it would cut 3,000 jobs, or 10 percent of its aerospace workforce, over the next 12 months and another 1,200 jobs at its Short Brothers unit in Belfast. The company has 75,000 employees in 24 countries.

Bombardier has suffered from a severe downturn in the aerospace market since the Sept. 11, 2001, attacks in the United States and announced roughly 9,000 layoffs over two years, almost a quarter of its total aerospace workforce.

FMI: www.bombardier.com