Airbus A220 factory faces productivity slowdown amid contract negotiations

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Montreal’s Airbus factory, responsible for assembling the planemaker’s smallest commercial jet, the A220, is experiencing a slip in productivity. This comes as the factory’s 1,300 workers mull over a new contract offer, following unsuccessful negotiations between Airbus and union representatives.

Despite intensive talks, a deal wasn’t reached this week, prompting Airbus to make a second offer, which will be reviewed by workers on April 7. The details of this new proposal, which comes after a previous offer was rejected earlier in the month, have not been disclosed.

Sources reveal that Airbus has informed assembly workers of a decrease in overtime work and productivity due to the ongoing negotiations and disruptions in the supply chain. The planemaker is striving to increase production of the A220, a model known for its 110 to 130-seat capacity, to 14 planes per month by 2026, with production divided between the Mirabel plant in Quebec and a facility in Mobile, Alabama. This target is a significant jump from the six planes per month reported in December 2022.

An Airbus spokesperson emphasized the company’s commitment to maintaining the ramp-up target, despite recent productivity challenges. The spokesperson stated, “Despite a certain slowdown in productivity felt recently, we are maintaining our overall ramp-up target of 14 aircraft a month in 2026,” adding, “We have taken measures to recover efficiency.”

The International Association of Machinists and Aerospace Workers (IAM), representing the workers, has been advocating for higher wages and improved working conditions. Earlier this month, the union announced its intent to implement pressure tactics to slow production, following a strike authorization from workers. IAM’s actions reflect a broader trend, with various labor groups leveraging tight labor markets and high inflation to secure favorable contracts, including substantial raises, as seen in the airline and automotive industries in 2023.

The outcome of the negotiations at Airbus is closely monitored by IAM leaders in Washington state, where Boeing’s production workers are seeking wage increases exceeding 40% over the next three to four years, according to a spokesperson for the union’s U.S. local. In Montreal, the local representing Airbus workers confirmed that negotiations are ongoing but provided no further details.

Recent disruptions at the Mirabel factory, including noisy disturbances by workers, highlight the tensions surrounding the contract negotiations. Airbus acknowledged these concerns, stating, “Recently, some employees have put forth their point of view and we heard them,” underscoring the company’s commitment to finding a balance between employee interests and the economic realities of the A220 program.

(Source: Reuters | MSN)

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