Three sources familiar with the situation revealed that Airbus has informed employees at its A220 factory in the Montreal area that it intends to enforce compulsory weekend overtime to address the production backlog of the financially unprofitable aircraft.
Sources speaking on condition of anonymity revealed that representatives from Airbus's Canadian division are scheduled to meet with the International Association of Machinists and Aerospace Workers (IAM) union on Wednesday to discuss the proposed plan.
Mirabel facility's employees are unlikely to react positively to this, given their recent labor negotiations with Airbus, which lasted until early May of this year. With their contract expiring in December 2023, workers rejected two proposals from Airbus. They resorted to pressure tactics to decelerate production before reaching a new five-year contract agreement on May 1st.
Airbus' Delays Caused by Parts and Labor Shortages
Discussions occur amid mounting concerns regarding supply problems at the world's largest aircraft manufacturer. Reuters reported last month that Airbus is grappling with a fresh wave of industrial challenges stemming from shortages in parts and labor and that several dozen aircraft are anticipated to encounter additional delays in the assembly process during the year's second half.
According to industry sources, the single-aisle A220, which typically accommodates approximately 110 to 130 seats, is currently one of the models most significantly impacted by production delays. The extent of the recent delays and their impact on Airbus' overarching delivery goal of 800 planes this year remains uncertain. Analysts suggest that Airbus tends to establish its delivery targets cautiously, but the buffer for coping with additional industrial challenges seems to be diminishing.
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A220 Aircraft Challenges and Goals
Reuters reported a decline in productivity at the Airbus factory in the Montreal area, one of two A220 aircraft manufacturing sites, which occurred in March when the plant's 1,300 employees engaged in pressure tactics during contract negotiations.
Airbus aims to expand the production of A220 jets to 14 planes per month by 2026, to be distributed between the factory in Mirabel, Quebec, and a plant in Mobile, Alabama. This target represents a significant rise from the six planes per month reported in December 2022, the most recent publicly disclosed rate.
An Airbus spokesperson declined to comment on production planning and internal affairs but reiterated that jet deliveries are expected to be backloaded towards the year's second half and that the operational environment continues to present challenges.
Implications of The Mandatory Overtime for The Union
Christian Bertrand, president of the Machinists' Union local representing the A220 workers, emphasized the importance of adhering to mechanisms outlined within the collective agreement before implementing over time.
Unions have taken advantage of the tight labor markets to advocate for increased flexibility in working conditions. Unionized workers at Boeing, Airbus' US rival, seek to eliminate compulsory weekend overtime as part of their ongoing contract negotiations with the company.
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