Unifor members end strike at Bombardier after ratifying new contract

(Reuters) -Unifor said on Wednesday that its members at Bombardier ratified a new three-year collective agreement, ending an 18-day strike at the business jet maker's manufacturing facilities in Mississauga and Waterloo.

The new contract provides general wage increases of 12.5% over the life of the deal along with higher pension contributions and better job security, the Canadian union said.

Separately, Bombardier said normal assembly operations will resume immediately at its Mississauga aircraft assembly centre in the Greater Toronto area.

The 1,200 production and skilled trades members under Local 112 along with 250 office, and the professional and technical workers represented by Local 673 work at the two Bombardier facilities to build its Global series of jets.

The new contract comes weeks after the union announced a strike action at Bombardier, upon failing to reach a deal by the June 22 deadline.

The Montréal, Quebec-based company reported annual revenue of over $8 billion in 2023, a 16% year-on-year rise, as the pandemic boosted demand for private flying.

While Bombardier catches up with deliveries as supply chain issues improve, business jet makers continue to face labor shortages.

Unions across North America have been pushing for better pay and benefits to match the growth in revenue that companies have been enjoying as they ramped up operations owing to a post-pandemic recovery.

In July 2021, Unifor-represented members at Bombardier's Toronto business jet assembly plant ratified a three-year collective agreement including higher wages and pension benefits, after a week-long strike.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shailesh Kuber)