Airbus plant in Canada faces productivity slump amid contract negotiations

Airbus plant in Canada: Productivity has declined at an Airbus factory near Montreal as workers contemplate a new contract offer, sources familiar with the matter revealed, citing a union memo sent on Friday.

Negotiations between Airbus and union representatives failed to yield an agreement this week, prompting a new offer to be presented to approximately 1,300 workers on April 7. 

The details of this revised offer, following the rejection of an earlier proposal earlier this month, have not been disclosed.

Sources indicate that assembly workers at the plant, responsible for producing A220 jets, were informed by the company about reduced overtime work and decreased productivity attributed to ongoing talks and supply chain challenges.

Airbus aims to increase production of its A220 jets, despite financial losses, with plans to ramp up to 14 planes per month by 2026. 

However, the recent productivity slowdown has prompted the company to take measures to mitigate efficiency losses.

The International Association of Machinists and Aerospace Workers union, advocating for improved wages and working conditions at the Mirabel facility, had earlier authorised strike actions. 

Meanwhile, negotiations continue, with the outcome watched closely by IAM leaders in Washington state, particularly in light of similar wage demands at Boeing's production facilities.

Despite disturbances and expressions of discontent from workers, Airbus remains committed to finding a resolution that balances employee interests with the economic realities of A220 production.

(With Reuters Inputs)