A 19-day strike at Bombardier's three Montreal manufacturing plants ended on 3 May with the 7,500 workers securing a 16% pay hike over four years, a C$1,000 ($630) signing bonus, a two-year reduction in retirement age, and other benefits.
Bombardier says it gained from securing a four-year rather than three- year deal, and cutting the 19% pay increase demand. Bombardier says the strike, its first in 37 years, inflicted damage, but declines to discuss details. "We feel we can make up the loss," it says. The strike probably cost the production of six 50-seat CRJ200s, two 70-seat CRJ700s and one Challenger, which can be made up in overtime, says an analyst at BMO Nesbitt Burns.
First quarter CRJ deliveries are expected to reach 50 against 82 a year ago, says Merrill Lynch, which expects first quarter aerospace operations revenue of C$1.6 billion versus C$2.6 billion a year ago.
Source: Flight International
