MONTREAL (Reuters) -Canadian Airbus A220 assembly workers on Sunday rejected a second company offer, raising concerns over production of the money-losing jet.
An estimated 1,300 workers are involved in the contract talks. Airbus is seeking to expand production of its smallest commercial jet, as it rides a broader wave of orders from airlines coping with a rebound in travel demand from the COVID-19 pandemic.
The International Association of Machinists and Aerospace Workers union, which wants higher wages and better conditions for the workers at the Airbus facility in Mirabel, Quebec, said 99% of the workers who voted rejected the offer.
The union said talks will resume on Monday.
Airbus said it was committed to securing a negotiated agreement.
“The dialogue at the table has been open and constructive, however there is still a gap between the union’s demands and the current financial capacity of the A220, which has not yet reached breakeven,” an Airbus spokesperson said.
Productivity has slipped due to pressure tactics by the union as it pursues a new deal and also due to supply-chain snags.