MONTREAL- Airbus A220 aircraft assembly line workers in Montreal, Canada, have ratified a new five-year contract, the International Association of Machinists and Aerospace Workers union (IAM) announced Wednesday (May 1, 2024).
The approval of the contract, with over three-quarters of the votes in favor, comes after a series of negotiations and concerns about a potential lockout at the facility.
Airbus Worker Accept Contract in Canada
The approval follows earlier rejections of two offers and a tentative agreement that union members turned down. The new contract covers approximately 1,300 workers whose previous contract expired in December 2023, reported Reuters.
Under the new agreement, workers will receive a 23% salary increase over the five-year period, along with improved access to group insurance and enhanced evening shift premiums to incentivize work during later hours.
Despite unsuccessful attempts to secure a four-day workweek for afternoon shift employees, the agreement addresses key concerns raised by the union.
The successful negotiation averted the possibility of labor disruptions that could have resulted in delays in aircraft deliveries to airlines. Before the agreement, Airbus had indicated its intention to impose a lockout beginning May 2 if a resolution was not reached.
Ramping Up Production
The Canadian division of the European aircraft manufacturer is focusing on increasing production and managing expenses for its narrowbody jet, the A220, despite financial losses. This jet, smaller in size compared to the Airbus A320neo and Boeing 737 MAX, is the subject of Airbus’s efforts to enhance efficiency.
According to Airbus, the newly approved agreement aims to achieve a better distribution of shifts and knowledge transfer between experienced employees, typically working day shifts, and less senior workers, often assigned to later shifts. This is particularly crucial as the production rate of the A220 is being accelerated.
Recent labor negotiations across North America have seen unions leveraging tight labor markets and high inflation to secure significant contracts. In 2023, various groups obtained notable raises, including airline pilots and auto workers.
IAM leaders in Washington state closely monitor the outcome of the Airbus discussions in Canada, particularly concerning Boeing’s production workers. These workers are advocating for substantial wage increases, potentially exceeding 40% over a period of three to four years.
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