MONTREAL, CANADA (Metro Rail News): On Tuesday to help slow the spread of the COVID-19 pandemic, the Bombardier declared that in support of the current mandates from the Govt of Quebec and Ontario, that it would discontinue all non-important work at most of their Canadian based operations beginning this evening at 11:59 pm till 26th April 2020, inclusively.
This suspension comprises Bombardier’s aircraft along with rail production works in the provinces of Quebec and Ontario. Employees affected by these short term shutdowns would be located on furlough as would corporate office employees whose support functions are few critical in temporary.
Bombardier’s CEO and senior leadership team would forgo their pay, and the Chairman and members of Bombardier’s Board of Directors have accepted to forgo board compensation for the remainder of 2020. They are also suspending their 2020 financial outlook as it evaluates the effect of short term closing their Canadian operations like other actions being taken against the COVID-19 outbreak.
Chairman of the Board of Directors, Pierre Beaudoin, stated since the CoronaVirus outbreak the company has been concentrated on keeping our employees secure, serving our customers to the best of our ability during these difficult times and taking the necessary actions to protect our business for the long term. In addition to the actions announced today, Bombardier has cut all discretionary spending, is continuing the work on closing the previously announced transactions and is pursuing additional measures to improve liquidity.
Because of this decision, a whole of 12,400 employees of Bombardier would be affected and they would be placed on unpaid leave while the suspension period of production. The company can also face falling demand for latest aircraft businesses because of the broader economic slowdown triggered by the novel coronavirus outbreak over the world. Bombardier had declared the sell of their rail business unit to french firm Alstom SA in US$8.2 billion to deal with debts in Feb this year.