At one point on Monday the share value of Bombardier Inc, the Canadian business jet manufacturer, fell by up to 17.4% after workers on the critical Challenger business jet programme downed tools for a day. According to REUTERS news agency, the union representing approximately 1,800 Bombardier workers, the International Association of Machinists and Aerospace Workers, is trying to negotiate a more favourable pay deal after 76% of the workers rejected a five-year contract offer which included a pay increase of 2.5%.
Canada’s inflation rate hit a 31-year high at 6.8% in April. The union has confirmed that staff will return to work on Tuesday, June 14, as negotiations continue and by mid-morning Monday had recovered to an 8.1% drop in value as the company’s planned consolidation of Class A and B shares took effect. The benchmark Canada share index (CATSX) had fallen by 2.63% by the end of the day, while the Bombardier share price (BBD-B.TO) recovered to a loss of 4.92%. The Bombardier Challenger programme is vital to the success of Bombardier, accounting for over one-third of the company’s plane deliveries during 2021.
