Bombardier imposes wage freeze

Citing lagging sales and rising costs Bombardier has imposed a wage freeze on it's non-unionized employees, but unionized workers will get the wage increases contained in their collective bargaining agreements.

The decision, contained in a memo that went out last week, will affect about 38,000 employees at the head office, Bombardier Aerospace and Bombardier Transportation.

The memo says that the company's financial performance is failing to meet shareholder's expectations.

The company had already begun a cost cutting programme that included restricting business travel  replacing it with video conferencing when possible and slashing training budgets.

Leave a comment:

showing all comments · Subscribe to comments
Comment Like
  • 11
  1. clint posted on 03/07/2014 06:54 AM
    Good first step.....next ...stop taking taxpayers money....try to become a profitable company
    1. Richard posted on 03/07/2014 11:16 AM
      @clint Try to make a profit? Do you know how much profit Bombardier made last year? Do you?
      And what taxpayer money are you talking about? Did you read where 38,000 people are affected by this? Do you know how much taxes these people pay? What about the unionized people not affected by this? How much do they pay in taxes? So I'll ask again....what taxpayer money is Bombardier taking?
  2. Joe posted on 03/07/2014 06:59 AM
    They are failing to meet shareholders expectations. We hear this more and more now. What then happens is more and more cuts as we have seen with Bombardier. This now is just the latest ones. If the shareholders are still not happy, more measures will be taken and more will be let go. What does this mean in the end for their customers? It means that they will end up getting products that do not have the quality that they should have. All so those who have shares can get their money. Then the blame game comes along because now they produce a product not as good as it should be and the CEO or other top official will be let go and the cycle starts again.
    1. Richard posted on 03/07/2014 11:27 AM
      @Joe What cuts?
      What are you talking about....No one was cut....salaries were frozen. Bombardier did not become the 3rd largest airline manufacturer and the leading business jet manufacturer in the world with bad quality

      And who exactly do you think the shareholders are? All millionaires and billionaires? Do you have an rrsp> Mutual funds? You are prob a shareholder too.....But keep craping on Canadian companies....It will help to keep Canada small
  3. joeN posted on 03/07/2014 08:03 AM
    How about leading by example Mr. Beaudoin and cut your salary and that of the overrewared executives at Bomabardier. It's thanks to your team's blunders that the shares have been underperforming.
    1. Richard posted on 03/07/2014 11:22 AM
      @joeN No its thanks to the media and to some people here who love to crap on Canadian companies

      Again...why is it reported? Whose business is it? Do you not think it wii affect stock prices?

      A couple of year ago the British Gov. decided not to buy trains for the city of Derry...Where Bombardier has a plant...they bought from Germany instead...The media there organized protests and petitions demanding that they buy from Bombardier and keep their people working.
      Here the media demands we sent our jobs and tax money to other countries......
  4. Richard posted on 03/07/2014 08:19 AM
    This is news why?

    Whose business is it if Bombardier freezes wages?
    Oh right....Its an opportunity to crap on Bombardier
    Canadians crapping on Canadians
  5. Sergio posted on 03/07/2014 09:35 AM
    Being a supplier to Bombardier for many years they it isn't as easy as we see it . They are in a global market which is very competitive. They were small players agsainst Boeing and Airbus and now a Chinese supplier. They tried to expand in the middle size aircraft passenger but are realizing that its not that simple. Also they have a Staff that is extremely Quebec making it extremely difficult to attrack engineering talent from abroad. Now Imagine a seperate Quebec with its own Country Credit rating whic will be below Canada and USA. You now have a Quebec money value at above 40% below as the EU . Now what do you do Competitively ?? Move or downsize back to Canadair Waterbombers ,,
    1. Jipy posted on 03/09/2014 04:09 PM
      @Sergio Wow , blaming the lack of attracting manpower and the troubles of Bombardier on the fact that Quebec is separatist, that's original... Bombardier is international company and is not just based in Quebec. As a matter a fact the Cseries is only assembled in Quebec, most of the parts are outsourced either from other suppliers or other Bombardier Site .Bombardier is an worldwide company. I don't think Bombardier’s trouble is based on the Province. They have been very aggressive in their commitments and missing them has got the shareholders and investors scared. Stick with the water bomber you say, I truly hope you are not a business adviser for Bombardier, if so I’m selling my shares. That’s Great counseling, if Bombardier would have stuck to its water bomber; it couldn't have made it to the rank of the 3rd largest aircraft manufacturer in the world.
  6. Betty posted on 03/10/2014 06:03 AM
    90% of the 38,000 Bombardier employees are laughing about the salary freeze because what's really important to them is their big juicy bonus (which are bigger and juicier the higher up the position) and that hasn't been affected. It's the 10% at the bottom of the salary scale that are being punished for the bad decisions of the top tier execs. shameful really.
showing all comments

Share this article:

News Videos

Latest News