Bombardier announced on Wednesday that it will lay off 550 employees at its Thunder Bay plant in Ontario, cutting its workforce by half. The company explained in a press release that the decision was “inevitable” because the contract to build streetcars for the city of Toronto is ending and at the moment there are no new agreements.
The news of Ontario losing 550 workers at the Bombardier plant in Thunder Bay created a blame game match between the federal Liberals and Ontario PC’s.
“The decision is due to the cyclical nature of our work and the decline of our two high-demand programs,” said the company, which is dedicated to the manufacture of rolling parts and commercial aircraft. The dismissals will be effective on November 4. Bombardier added that it will continue working with its partners to try to get new contracts and that it will try to mitigate the damages as much as possible.
But apparently its not all bad news for Bombardier the company closed “a great year” in the city of Queretaro in Mexico where the Global-7500 aircraft is built, Bombardier has dumped 50 million dollars worth of investments towards the plant. Reportedly in 2018, the number of employees in Querétaro grew approximately 53 percent compared to 2017, adding more than 2 thousand people to its work force.
- 2,000 employees work at the Bombardier plant in Querétaro.
- 53% growth in employment in 2018
- Bombardier has added 50 million dollars is investment in the Mexican state in the last five years.
This past may, Mexican president Andrés Manuel López Obrador met with executives of Bombardier. The objective of this meeting was to discuss investment issues in the aerospace industry and the construction of trains
Its not clear if Bombardier will get a new contract to build trains for the Mexican government, but Mexican president did mention the country already has a Bombardier facility in the country and hinted that the trains could be built there, of course there is also the possibility that the new trains could be built in Canada.
Just in 2017 the Trudeau government gave $372.5M in loans to Bombardier, the Montreal-based company has been requesting $1B in federal funding since 2015