TORONTO – Head of Bombardier Inc. defends its move to fire 5,000 workers – of which 3,000 in Canada – citing efficiency and leaving the door open for more jobs.
Executive Director Alain Bellemare told Toronto Today's investment conference that the productivity incentive is "difficult" and unpopular, but essential to achieving the status of a "world class" and improving the ratio of earnings per employee. He said the management will continue to "lean" or direct the company from Montreal.
Bellemare did not specify where and when the positions will be reduced, although Bombardier said that 2,500 workers in Quebec and 500 in Ontario will lose their jobs in the next 18 months, as part of its five-year cost reduction plan, focusing on rail and business planes and reducing net long-term debt of 9 billion dollars.
The union and opposition leaders have condemned the dismissal of last Thursday's announcement, and some have demanded that the executive directors give up their salaries.
Quebec Minister of Economics and Innovation Pierre Fitzgibbon called for a special meeting of industry and trade unions in Montreal on Monday to discuss layoffs and find ways to hire affected workers. Bellemare did not attend, he sent two Bombardier executives to his post.
Despite negotiations on the sale of the K-400 Longviev Aviation Capital turboprop for about $ 300 million, Bellemare said he wants to continue with regional CRJ airplanes, but will later re-evaluate the possibility of a "partnership" with another group.
Companies in this story: (CCS: BBD.B)