Airbus has reached an agreement with the employees at their A220 regional aircraft factory in Canada, resulting in a 23 percent increase in wages over the next five years. The IAMAW union, which represents the employees, had threatened a strike at the Mirabel factory near Montreal. However, with the help of a mediator, a deal was reached after previous proposals had been rejected. The majority of union activists voted in favor of the new agreement, which also includes higher evening premiums and better access to group insurance. The factory employs around 3,000 people.
In a statement, Airbus mentioned that the agreement will help to improve services and increase efficiency in producing more A220s. They also hope to reach the aircraft program break-even point by 2026. The A220 program has been under Airbus’ control since 2017 when they acquired it from Canadian aircraft manufacturer Bombardier. The A220 is a smaller single-aisle aircraft compared to the A320, which is one of Airbus’ best-selling models.