Sunday, September 21st8.5°C
23284
20950

Bombardier puts salary freeze on its 38,000 non-unionized employees

MONTREAL - Bombardier is freezing the salaries of its roughly 38,000 non-unionized employees as it deals with costly delays in the launch of its CSeries commercial jet.

The freeze covers workers in all divisions, including its head office in Montreal, spokeswoman Isabelle Rondeau said Friday.

"The end of the salary freeze is undetermined," she said.

The Montreal-based transportation giant has already announced 1,700 layoffs in its aerospace division and Rondeau said company is also cutting travel budgets and reducing business travel.

"We've had strong orders. However, we've had some challenges regarding the achievement our profit margins," she said in explaining the need to cut expenses.

Bombardier has delayed entry into service of its CS100 plane until the second half of 2015, with the larger CS300 six months after that. The company has said the aircraft's cost will rise to about US$4.4 billion as delays in first deliveries add about US$1 billion in development costs and capitalized interest.

Analysts have raised concerns about whether the delay will cause a cash crunch for the company and force it to issue more shares or seek more funding.

But Bombardier has given assurances that the company has enough flexibility to deal with the situation, saying it has $3.4 billion of cash and access to $1.4 billion in credit.

Still, Moody's Investors Service and Standard & Poor's have both downgraded Bombardier's ratings.

Last month, Bombardier reported adjusted net income fell 29 per cent to US$129 million in the fourth quarter, down from US$181 million a year earlier.

Bombardier makes planes and trains and operates globally.

The Canadian Press


Read more Business News

22970


Recent Trending




Today's Market
S&P TSX15265.35-200.19
S&P CDNX955.06-10.73
DJIA17279.7413.75
Nasdaq4593.426-13.637
S&P 5002010.40-0.96
CDN Dollar0.9126+0.0004
Gold1216.90-10.00
Oil92.45-0.62
Lumber329.00-0.90
Natural Gas3.911-0.064

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.37+0.05
Cantex0.05-0.01
Anavex Life Sciences0.223-0.0031
Metalex Ventures0.060.00
Russel Metals35.75-1.26
Copper Mountain Mining2.66-0.02
Colorado Resources0.165-0.01
ReliaBrand Inc0.0249+0.0009
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.29-0.01

 



23104

FEATURED Property
1989156Great Strata Alterntative
$399,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...

_








Member of BC Press Council


22962