Oct 30, 2017
A recent Financial Post article looks at the deal between Bombardier and Airbus, a European competitor, including the promises that the federal government has made to include safeguards to support Canada’s aerospace industry. According to the article, Airbus wants to buy a majority stake in Bombardier’s CSeries commercial planes, but the proposal, which still needs federal approval, has raised concern about whether it will result in job losses in Québec, where Bombardier is based. Author Lee Berthiaume also notes that questions also remain regarding the length of time Airbus will be obligated to “maintain employment and production levels under the agreement, and whether Canada will continue to benefit after that period has expired.”
Peter Glossop, a partner in Osler’s Foreign Investment Practice Group, states that most government-imposed undertakings run for three years when a foreign company takes over a Canadian entity. He also adds that shutting down or slashing production at the Mirabel plant could be difficult given its expertise with the CSeries, which could ensure its sustainability over the long run.
“There’s lots of embedded know-how in Canada, so just shutting all that down would be quite difficult,” says Peter. “These people know how to build them.”
For more information, read Lee Berthiaume’s full article “Feds promise to guard Canadian jobs before approving Bombardier-Airbus deal” in the Financial Post.