Cautious welcome

Airbus’ decision to take a majority stake in Bombardier’s C-Series jet after the US imposed “crushing” tariffs on the aircraft has been given a cautious welcome by Unite, which warned there is still much work to be done to ensure jobs are not lost.

European aerospace giant Airbus is buying 50.1 per cent of the C-Series programme and will provide sales, marketing, procurement and customer support services to keep the embattled jet’s future viable.

The move came after the US slapped a 300 per cent levy on the C-Series in response to a complaint by Boeing that Canadian firm Bombardier had received unfair government assistance.

Unite said the new partnership offers “some hope” to thousands of Bombardier workers in Northern Ireland, as well as supply chain workers in Ireland and other areas of the UK, whose livelihoods are threatened by the tariffs.

‘Real and present danger’

However, Unite assistant general secretary Steve Turner said government needs to face up to its responsibilities and fight to get the unfair levy removed.

“The deal could take a year or so to get through the relevant competition authorities while Boeing in the US is unlikely to sit idly by. During this period there is a danger that tariffs will be imposed and the C-Series will be effectively locked out of aviation’s largest market,” Turner explained.

“Until the tariffs and Boeing’s complaint against Bombardier are dropped then the very real and present danger to UK jobs remains. UK ministers cannot think their job is done. They must use every lever at their disposal to ensure Boeing drops its complaint.

He added, “This includes using the European Commission, a route that saw similar bullying tactics from Boeing successfully stopped over a decade ago. The public will be horrified if the UK government fails to pursue this route and utilise all the leverage at its disposal to protect UK jobs.”

Turner said the way the government deals with the Trump administration, which is pursuing an aggressive “America First” policy that seeks to subjugate other economies, over the Bombardier issue will have broader ramifications for how the UK is treated in future.

“While this is UK aerospace today, any sector of our economy could be threatened in the future. The UK government needs to stand up against corporate bullying backed by the US protectionist regime under the Trump administration,” said Turner.

“Unite will continue to work with all parties who have a role in saving these jobs including the UK and Canadian governments, Bombardier, Airbus and Boeing. We will not rest until we are 100 per cent certain that these Bombardier jobs are secure.”

EU trading bloc power

Later this week, Irish Taoisearch Leo Varadkar will be raising the plight of Bombardier workers with EU President Jean-Claude Juncker.

Unite Ireland secretary Jimmy Kelly praised the Irish leader’s approach, saying bringing the issue to EU level is a key part of getting the levy reversed.

He said, “The revelation on BBC Spotlight that Taoiseach Leo Varadkar is set to raise the issue of the tariffs with the EU President Jean-Claude Juncker will be welcomed by Bombardier workers.

“It is vital that we escalate this trade dispute to a European Union level, and fully use the power of that trading bloc to stand up to the corporate bullying of Boeing and its backers in the protectionist Trump administration.”

Kelly was also clear that the UK government must use its considerable purchasing power to pressure Boeing into rescinding its complaint.

“Unite has spearheaded a growing campaign to demand the UK government use its leverage as the second biggest client of Boeing internationally.”

Train contract boost

Meanwhile workers at Bombardier’s Derby train making division were given a boost after a new £680m contract to supply 413 carriages for West Midlands Trains was announced.

Unite praised the skills and tenacity of the workforce but warned the government needs to deliver a jobs first Brexit that secures the company well into the future.

“Since the blow of losing out on the Thameslink contract in 2011 the Bombardier workforce has shown great resolve and determination in turning the fortunes of the Derby site around,” said Unite national officer Tony Murphy.

“This hard work cannot be put at risk by continuing government uncertainty surrounding Brexit which is currently leading to businesses putting off investment decisions.

“We need a jobs first Brexit and for government ministers to pursue a ‘built in Britain’ procurement policy as part of an active industrial strategy that supports decent jobs.”