Bombardier

Tuesday November 13, 2018

November 13, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday November 13, 2018

The good, the bad and the ugly of corporate welfare

Federal government investment in private business — disdainfully called “corporate welfare” by critics — can raise the blood pressure of even the most Zen taxpayer. Consider:

April 4, 2017

Last month, Ottawa wrote off a loan and other subsidies granted to Chrysler for $2.6 billion. The interest is also in the wind. Or how about the Ontario government’s $220 million investment in Toyota to create some 450 jobs (which works out to a $488,888 subsidy per job). And then, of course, there is Bombardier, the grandmother of all corporate welfare recipients.

The Quebec-based transportation company got its first government handout in the mid-1960s. By now, depending on who you believe, Bombardier has received something like $3.7 billion from Canadian taxpayers. And just to add insult to injury, the company isn’t exactly prospering.

October 13, 2016

Last week, it announced it was cutting 5,000 jobs, including 500 in Ontario, and it sold off one of its aircraft divisions. It also announced a new contract to provide rail cars to the City of Montreal, but that good news didn’t offset bad news about its stubborn corporate debt. Analysts are again speculating that Bombardier’s turnaround may be wishful thinking, and its share prices took the expected nosedive at that news.

Most galling is the reality that those billions, just like the billions in Chrysler bailout money Ottawa just wrote off, are never coming back to public coffers.

February 18, 2016

What can we do, other than get all red in the face and grind our collective teeth? It’s not like you can vote for a different party to avoid these so-called investments. All parties do them, in Bombardier’s case, pretty much equally.

Or, we can try and do what makes sense but is typically very hard for average taxpayers struggling to get by in this challenging world — look at the big picture, and look at it over time, not in the moment.

First, so-called corporate welfare is far from new. It goes back as far as the days when Canadian railroads were getting royal treatment in the form of prime pieces of real estate. But what if, back in the ’60s, the government of the day had said no to Bombardier and set the tone for the future? (Continued: Hamilton Spectator)  

 

Thursday September 28, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday September 28, 2017

Bombardier hit with 219% duty on sale of jets to Delta Air Lines

OTTAWA—Bombardier’s hopes for breaking into the U.S. commercial aviation market took a massive blow on Tuesday, as the U.S. Department of Commerce proposed a hefty 219 per cent duty on its CSeries jets.

April 4, 2017

The department ruled in a preliminary decision that Bombardier benefited from improper government subsidies, which gave the Montreal-based company an unfair advantage when selling south of the border.

The investigation was sparked by a complaint from U.S. aerospace giant Boeing, after Bombardier secured a deal for up to 125 of its CS100s with Delta Air Lines in April 2016.

The list price for the planes is around $6 billion, but the actual amount of money involved in the deal has not been made public and Boeing alleges Bombardier offered them for much less.

October 13, 2016

The financial penalties aren’t officially due until Bombardier delivers the first CS100 to Delta, which is expected in the spring. They could also still be dropped or refunded.

The key will be whether the U.S. International Trade Commissions finds that Bombardier-Delta deal actually hurt Boeing’s business, a decision that’s not expected until the spring. (Source: Toronto Star) 

 

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Tuesday April 4, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday April 4, 2017

Bombardier CEO admits ‘bad job’ communicating pay increases

Bombardier did “a bad job” explaining its decision to raise executive compensation, but the company has listened to the public and is now ready to turn the page, CEO Alain Bellemare says.

October 13, 2016

In an interview, Bellemare acknowledged that Bombardier (TSX:BBD.B) underestimated the anger that would erupt over the pay hikes, which were to come as it was issuing pink slips to thousands of employees while receiving federal and provincial assistance.

“It’s all on us at Bombardier,” he said. “The message here is we did listen, we paid attention, we care.”

Bellemare announced late Sunday that he has asked Bombardier’s board of directors to delay the payment of more than half of this year’s total planned compensation for six executive officers, including himself, by one year — until 2020. The compensation would be paid as long as certain objectives that haven’t changed are met by that time.

The remuneration is required to attract top talent to turn around the company’s fortunes, which in turn benefits employees and shareholders alike, he said.

Last week, the company issued a proxy circular showing that Bellemare and five others were in line for a nearly 50 per cent increase in compensation, most of which was to be granted in 2019. The disclosure stoked fierce outcry that lasted for days, including a weekend protest at Bombardier’s headquarters in Montreal.

Federal Economic Development Minister Navdeep Bains said Monday that like many Canadians, he was disappointed by the Bombardier executive pay raises, but it seems like the company is trying to address those concerns.

“Clearly there’s a recognition that they need to make changes, that they need to approach this differently,” Bains said, striking a different message from the one offered by the prime minister last week.

Asked how he can justify the $372.5-million federal loan for Bombardier’s CSeries and Global 7000 aircraft programs, Justin Trudeau said his government respects “the free market and the choices that companies will make.” (Source: CTV news) 

 

Thursday October 13, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Thursday October 13, 2016 Federal Liberals signal desire for Ômeaningful investmentÕ in Bombardier The federal government investing in aerospace giant Bombardier is not a matter of if but how, Innovation Minister Navdeep Bains said Tuesday. ÒWe want to be a partner,Ó Bains said after announcing up to $54 million in funds for a Bombardier-led aerospace-research consortium. ÒWe want to find a solution and we want to continue to make meaningful investments. We want to be a partner, we are at the table, we want to find a solution. ItÕs not a matter of if but how we want to make the investment.Ó His comments are the clearest the Liberals have been to date regarding whether theyÕll accept the Montreal-based companyÕs request for $1 billion in federal funding. In early September, Bombardier (TSX:BBD.B) received the second of two instalments of US$500 million from the Quebec government. Quebec now owns 49.5 per cent of a new limited partnership of the CSeries aircraft program, including larger versions of the plane beyond the CS100 and CS300 should they be developed. Bains wouldnÕt give details as to exactly how much Ottawa will invest or where the money will be targeted. He did reiterate the conditions his government will place on any future funding. Ottawa wants Bombardier to keep its head office and the jobs connected to its research and development activities in the country, he said. (Source: Financial Post) http://business.financialpost.com/news/transportation/federal-liberals-signal-desire-to-invest-in-bombardier-but-dont-indicate-dollar-amount Canada, Ottawa, Parliament, Bombardier, aerospace, subsidy, corporate, welfare, Quebec, pipeline, Justin Trudeau, Navdeep Bains, philippe couillard

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday October 13, 2016

Federal Liberals signal desire for ‘meaningful investment’ in Bombardier

The federal government investing in aerospace giant Bombardier is not a matter of if but how, Innovation Minister Navdeep Bains said Tuesday.

“We want to be a partner,” Bains said after announcing up to $54 million in funds for a Bombardier-led aerospace-research consortium.

“We want to find a solution and we want to continue to make meaningful investments. We want to be a partner, we are at the table, we want to find a solution. It’s not a matter of if but how we want to make the investment.”

His comments are the clearest the Liberals have been to date regarding whether they’ll accept the Montreal-based company’s request for $1 billion in federal funding.

In early September, Bombardier (TSX:BBD.B) received the second of two instalments of US$500 million from the Quebec government.

Quebec now owns 49.5 per cent of a new limited partnership of the CSeries aircraft program, including larger versions of the plane beyond the CS100 and CS300 should they be developed.

Bains wouldn’t give details as to exactly how much Ottawa will invest or where the money will be targeted.

He did reiterate the conditions his government will place on any future funding.

Ottawa wants Bombardier to keep its head office and the jobs connected to its research and development activities in the country, he said. (Source: Financial Post)

Published in the Leader-Post (Regina, Sask)

Published in the Leader-Post (Regina, Sask)

Thursday February 18, 2016

 

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Thursday February 18, 2016 Canada to lose 2,830 jobs as Bombardier slashes workforce Bombardier Inc. says it will cut 7,000 positions over the next two years including 2,000 contractors in both aerospace and train divisions Ð almost 10 per cent of its global work force. Most of the job losses will be in Canada and Europe, but will be partly offset by hiring in certain growth areas as production ramps up for the new CSeries aircraft. ÒWe are taking this difficult decision to make Bombardier strong,Ó said Bombardier CEO Alain Bellemare on a conference call with analysts on Wednesday after reporting weak fourth quarter earnings. The Montreal-based aerospace and rail equipment company says the cuts will begin in the coming weeks and be completed by 2017. It was not immediately clear where the job cuts will be, though 2,830 will be in Canada. Of those, 430 will be in Ontario and 2,400 in Quebec. In Canada, 400 jobs will be eliminated in the transportation division and 2,430 in the aerospace division. Transport Minister Marc Garneau says he has mixed feelings about the job cuts and the Air Canada deal. The minister sang the praises of BombardierÕs new aircraft, but he did not immediately commit to helping the troubled company out of its financial difficulties. The Quebec government is putting up $1 billion (U.S.) for a 49.5 per cent stake in the CSeries program, while the Caisse de depots et placement du Quebec, the pension plan, spent $1.5 billion (U.S.) for a 30 per cent stake in the companyÕs train division. Bombardier has asked the federal government to join in with financial assistance for the CSeries, but like Garneau, Navdeep Bains, minister of innovation, science and economic development, said Ottawa is still studying the idea. ÒAny action the government takes with respect to Bombardier will be first and foremost in the interest of Canadians,Ó Bains said in a statement. ÒWe have been clear th

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday February 18, 2016

Canada to lose 2,830 jobs as Bombardier slashes workforce

Bombardier Inc. says it will cut 7,000 positions over the next two years including 2,000 contractors in both aerospace and train divisions – almost 10 per cent of its global work force.

Most of the job losses will be in Canada and Europe, but will be partly offset by hiring in certain growth areas as production ramps up for the new CSeries aircraft.

“We are taking this difficult decision to make Bombardier strong,” said Bombardier CEO Alain Bellemare on a conference call with analysts on Wednesday after reporting weak fourth quarter earnings.

The Montreal-based aerospace and rail equipment company says the cuts will begin in the coming weeks and be completed by 2017.

 

It was not immediately clear where the job cuts will be, though 2,830 will be in Canada. Of those, 430 will be in Ontario and 2,400 in Quebec.

In Canada, 400 jobs will be eliminated in the transportation division and 2,430 in the aerospace division.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator - Friday February 12, 2016 Trudeau shies away from Liberals' balanced-budget vow, cites fading economy Prime Minister Justin Trudeau is backing away from a campaign vow to balance the public books before the end of his government's four-year mandate Ñ a promise that was central to the Liberal election platform. As a result of a weakening economy, the government's upcoming 2016-17 budget plan will show a deficit larger than the Liberals' promised $10-billion shortfall cap, Trudeau told Montreal's La Presse newspaper. Just how big that deficit will be remains unclear. If the economy continues to deteriorate, it will be difficult for the Liberals to live up to their pledge to balance the books in 2019-20, Trudeau said in an interview published Thursday. Less than two months ago, Trudeau insisted that the Liberal plan to make good on that key balanced-budget promise was "very" cast in stone. The doubts raised by Trudeau offer a glimpse of the fiscal pressure faced by the Finance Department as it crafts the government's first federal budget, expected late next month. "If we look at the growth projections for the next three or four years, it will be difficult (to return to balance)," Trudeau was quoted by La Presse as saying. "But everything we're doing is aimed at creating economic growth. When predicting the level of growth four years in advance, governments often miss the target." During the fall election campaign, Trudeau promised to keep deficits below the $10-billion mark in 2016-17 and 2017-18 unless the economic situation got radically worse. "Yes, we will go over $10 billion," Trudeau told La Presse. "By how much? We are in the process of examining that." In recent months, the Canadian economy has sputtered in large part due to the steep drop in commodity prices. On Wednesday, a National Bank of Canada report said the country's fading economic prospects could put the Liberal government on tra

Friday February 12, 2016

Transport Minister Marc Garneau says he has mixed feelings about the job cuts and the Air Canada deal.

The minister sang the praises of Bombardier’s new aircraft, but he did not immediately commit to helping the troubled company out of its financial difficulties.

The Quebec government is putting up $1 billion (U.S.) for a 49.5 per cent stake in the CSeries program, while the Caisse de depots et placement du Quebec, the pension plan, spent $1.5 billion (U.S.) for a 30 per cent stake in the company’s train division.

Bombardier has asked the federal government to join in with financial assistance for the CSeries, but like Garneau, Navdeep Bains, minister of innovation, science and economic development, said Ottawa is still studying the idea.

“Any action the government takes with respect to Bombardier will be first and foremost in the interest of Canadians,” Bains said in a statement. “We have been clear that such an important decision will only be made after due diligence, careful consideration and a strong business case.”

Bellemare said federal investment is very important because it would provide “a strong endorsement on the program itself.” As well, it would bring additional financial flexibility to support sale campaigns and production. (Source: Toronto Star)

 

SOCIAL MEDIA & OTHER PRESS

Discussion thread on in French on Reddit, and a slightly different tone in the comments also on Reddit.

Ottawa Citizen, February 22, 2016

Ottawa Citizen, February 22, 2016