June 23, 2018 / 3:05 PM / 2 months ago

Bombardier, Toronto union reach agreement ahead of strike deadline

MONTREAL (Reuters) - Canadian workers who assemble Bombardier Inc’s (BBDb.TO) turboprops and the company’s new top-of-the-line business jet on Saturday reached a tentative agreement with the company just hours ahead of a strike deadline, the union said.

A Bombardier logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) at Geneva Airport, Switzerland May 28, 2018. REUTERS/Denis Balibouse

Unifor, the union representing the 1,600 workers, has previously said its members were looking for a three-year contract with greater job security on the company’s strong-selling Global 7500 business jet, among other demands.

A Bombardier spokesman confirmed that a tentative agreement has been reached. Union members are set vote on Sunday to ratify the agreement.

The long-range jet, which is to enter service this year, is a critical part of Bombardier’s strategy to grow business aircraft revenues to $8.5 billion in 2020, up from $5 billion in 2017.

Union workers at Bombardier’s Downsview plant in Canada’s largest city Toronto assemble several large-cabin business jets, along with the Q400 turboprops.

The union talks follow Bombardier’s May announcement that it had agreed to sell the sprawling Downsview site, the company’s largest land asset, to a Canadian pension fund for approximately $635 million. Bombardier will continue to operate from Downsview for a period of up to three years, with two optional one-year extension periods.

Reporting By Allison Lampert

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