MONTREAL (Reuters) – Canadian assemblers of the Airbus A220 rejected the company’s second offer on Sunday, raising concerns about production of the money-losing plane.
About 1,300 workers are involved in contract negotiations. Airbus is seeking to expand production of its smallest commercial jet as it receives a wider wave of orders from airlines coping with a rebound in travel demand due to the COVID-19 pandemic.
The International Association of Machinists and Aerospace Workers union, which wants higher wages and better conditions for workers at the Airbus plant in Mirabel, Quebec, said 99% of workers who voted rejected the proposal.
The union said negotiations would resume on Monday.
Airbus said it was seeking to reach an agreement through negotiations.
“The dialogue around the table has been open and constructive, but there is still a gap between the union’s demands and the current financial capabilities of the A220, which has not yet reached break-even,” an Airbus spokesman said.
Productivity has declined due to pressure tactics from the union seeking a new deal, as well as problems in the supply chain.