The aircraft unit of Bombardier Inc. and the Canadian Auto Workers averted a work stoppage at Bombardier's assembly plant near Toronto Tuesday, reaching a tentative agreement after the union extended its strike deadline in a last-ditch attempt hammer out a deal.
“We were under a lot of pressure to make concessions, but were able to resist these demands, recognizing that they would have ultimately been damaging to the past and current workers,” Merv Gray, a union chairman at the Bombardier plant, said in a statement issued by the CAW.
“We're happy with the agreement we negotiated on behalf of our members, especially in light of the current economic challenges.”
The proposed three-year pact also comes at a critical time for the company, which recently reported signs that the market for business jets is stabilizing.
After an all-night negotiating session, company and union negotiators agreed to continue talks beyond the CAW's original 10 a.m. ET deadline. Benefits for retired employees and job security had been key issues in the dispute, the CAW said in a release late Monday night.
“We're pleased that we were able to preserve retiree benefits, which were under threat in this round of negotiations, as well as making a number of other improvements for our current members,” Gus Goncalves, chairman of the office workers bargaining unit, said when the talks concluded Tuesday afternoon.
Company spokesman John Arnone confirmed that a tentative agreement had been reached, but said he could not comment on details until the proposal had been presented to employees.
The Bombardier aircraft unit has four major manufacturing plants. Its Toronto area de Havilland plant produces Q400 turboprop planes and Global business jets. It also makes wings for LearJet business jets that are assembled in the United States.
The company has been affected by the global downturn and reduced demand for business jets. However, company executives said earlier this month there were signs that the market for business jets was picking up.
The company also has a backlog of 102 orders for its Q400 turboprop planes, Mr. Arnone said.
CAW president Ken Lewenza said it was “a tough round of negotiations, but we were able to reach a good collective agreement that will both make improvements and protect our members' historic gains.”
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