Bombardier ponders U.S. production move

[CHIMO]

MONTREAL–Bombardier Inc. is considering shifting the production and assembly of its new CSeries aircraft to the United States to address higher currency costs — even as it seeks greater Canadian government contributions for the US$3.2-billion project.

Up to 2,500 employees had been expected to produce the aircraft's cockpit and overall assembly in the Montreal area, with another 2,000 jobs focused on the production of wings in Belfast, Northern Ireland.

"These are still are our preferred sites but the negotiations are going on and given the state of the Canadian dollar and the British pound, we are evaluating sites in the United States at this point," Pierre Beaudoin, president of Bombardier Aerospace said today during a conference call.

The American dollar has dropped in value against most major currencies, as reduced U.S. interest rates in recent months has accelerated a years-long decline against Canada's dollar.

http://www.thestar.com/News/Canada/article/306077

So it seems like our production costs in central Canada are too high!

At a crossroads, Big Labour digs in

Canada's labour unions don't exactly follow the words of Solidarity Forever when it comes to dealing with each other, but Canadian Auto Workers president Buzz Hargrove has won an ally in the battle against wage concessions.

In the battered forestry sector, where mill closings and job cuts have rivalled if not surpassed those in the auto industry, the Communications Energy and Paperworkers Union (CEP) of Canada will not allow employers to cut wages, pensions or benefits. But they are ready to start talks a full year before their contract expires and are willing to discuss ways of boosting productivity in a bid to help troubled AbitibiBowater.

But on “wages, pensions and benefits – the answer is no,” said CEP national president Dave Coles, standing in solidarity with Canadian Auto Workers president Buzz Hargrove, who drew that line in the sand earlier this week in preparation for talks with the Detroit auto makers later this year.

Unions across the country representing workers in struggling sectors face tough choices as they renegotiate contracts, and those choices have become more stark as the economy has shown signs of slowing. Should they consider wage cuts, as did a local of the United Auto Workers at a Magna International Inc. plant in New York State, to save their jobs? Or should they toe Mr. Hargrove's line?

http://www.theglobeandmail.com/servlet/story/RTGAM.20080222.wrlabour22/BNStory/National/

Or maybe they are looking for some more hand outs from government?

They wouldn't be looking for scab labour in the US? No. They wouldn't do that. That only happens in South America.