Airbus SE reached an agreement with its employees building the single-aisle A220 jet in Canada after they voted in favor of a mediator’s recommendations, averting a threatened lockout.
A mediator appointed by the Quebec government submitted his recommendations April 29, including wage increases totaling 23% over the next five years, along with other benefits.
The unionized employees accepted the conditions on the evening of May 1 with a majority of 77%, according to a statement from the union, a local unit of the International Association of Machinists and Aerospace Workers. About 81% of the workers voted.
A rejection of the deal would have triggered a lockout starting May 2 at the Mirabel manufacturing plant near Montreal. The union represents 1,300 out of 3,000 workers at the Mirabel facility.
The workers rejected a proposed labor agreement in principle between the French aircraft manufacturer and the workers’ union last month — it was the third offer made by Airbus this year.
“Despite the favorable outcome, this negotiation generated a great deal of frustration, which will leave scars,” union spokesperson Eric Rancourt said in the statement.
Airbus said in a statement that the deal will “facilitate a better balance between shifts” and “enable increased efficiency in order to produce a higher number of A220s and reach the break-even point for the aircraft program in 2026.”
The A220 program, which was developed in Canada, is 75% owned by Airbus and 25% by the Quebec government’s financial arm, Investissement Quebec, through a limited partnership. The investments by the province total C$1.3 billion ($947 million), but their market value had dropped to C$300 million as of last year, according to Quebec’s economy ministry.
The single-aisle airplane, formerly known as the Bombardier Inc. C-Series, was rescued by Airbus in 2017, but the company is still struggling to control costs.
