Bombardier has resumed assembly of its Global private jets in Toronto after an 18-day strike that paralyzed its Ontario facilities. It remains to be seen what effect the walkout will have on its annual deliveries.
The approximately 1,350 employees of two Unifor locals voted in favour of new three-year contracts that provide for average wage increases of 12.5 per cent. The results were released Wednesday.
“After a highly effective strike, our members have ratified a historic agreement that delivers substantial economic benefits at a time when aerospace workers need them most,” said Unifor President Lana Payne.
Bombardier assembles its Global family of business jets in the Greater Toronto Area. The Challenger jets are built in Montreal, which is also home to the Quebec aircraft manufacturer’s interior finishing operations.
Since it must present its second quarter results in two weeks – on July 25 – the Quebec multinational did not indicate on Wednesday whether the strike would have an impact on its deliveries in 2024.
For the time being, financial analysts do not seem concerned. Cameron Doerksen of National Bank Financial believes that the aircraft manufacturer will have delivered 32 aircraft to customers during the months of April, May and June.
“We are confident in the company’s ability to meet its full-year target of 150 to 155 deliveries,” the analyst said in an emailed note.
Ontario Bombardier union members have been on strike since June 23 due to a lack of agreements to renew their collective agreements with the employer.
On the Toronto Stock Exchange Wednesday afternoon, Bombardier’s Class B shares were up 5%, or $4.35, to $90.76. Since the beginning of the year, the stock has gained about 73%.