Technology: David Olive: Company mismanagement is the real reason Bombardier is slashing its workforce in Thunder Bay - PressFrom - Canada
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TechnologyDavid Olive: Company mismanagement is the real reason Bombardier is slashing its workforce in Thunder Bay

16:00  11 july  2019
16:00  11 july  2019 Source:   thestar.com

Bombardier Transportation consortium preferred bidder in $4.5B Cairo monorail

Bombardier Transportation consortium preferred bidder in $4.5B Cairo monorail MONTREAL — Bombardier Transportation says its consortium has been named preferred bidder in a C$4.5 billion contract to build and supply a new monorail system in Egypt's capital. The company's potential share of the design and build contract for the system in Cairo is C$1.8 billion with an operations and maintenance deal valued at about C$1.67 billion over 30 years. The 54-kilometre monorail will connect East Cairo with the New Administrative City and a second 42-km line will connect 6th October City with Giza. The railway division of Bombardier Inc.

The company announced Wednesday that it was slashing 7,000 positions including 2,000 contractors, over the next two years — more than 10 per cent A Unifor spokesman said no unionized job losses were anticipated at Bombardier ’s transportation plant in Thunder Bay , which makes the

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David Olive: Company mismanagement is the real reason Bombardier is slashing its workforce in Thunder Bay © Randy Risling Since the beginning of this year alone, Bombardier Transportation has won contracts to build train cars in Hamburg, metro cars for Delhi, tramcars in Brussels and train sets in Adelaide, Australia.

Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN.ca or Microsoft.

It would be easy to get the wrong impression about the impact of 550 layoffs at the Thunder Bay operations of Bombardier Inc., announced Wednesday.

The layoffs at the Lakehead’s “largest private employer” have been widely reported as a hammer-blow to the Northern Ontario economy. And, of course, as a setback to the long-troubled Bombardier, parent of rail-equipment maker Bombardier Transportation.

Canadian soldier from Petawawa killed during parachute exercise in Bulgaria

Canadian soldier from Petawawa killed during parachute exercise in Bulgaria A Canadian soldier from Petawawa has died during a training exercise in Bulgaria, the Department of National Defence says. Bombardier Patrick Labrie, a member of the 2 nd Regiment, Royal Canadian Horse Artillery based at 4th Canadian Division Support Base Petawawa, Ont., was killed. He died as as a result of his injuries during parachute training as part of Exercise SWIFT RESPONSE 19. The accident occurred around 10 p.m. on June 17 in Cheshnegirovo, Bulgaria. “I am deeply saddened by the loss of Bombardier Patrick Labrie,” Canadian Army commander Lt.-Gen. Jean-Marc Lanthier said Tuesday in a statement.

“ That is the best message for workers at Bombardier in Thunder Bay and the people of Ontario,” Fedeli says. In a statement Tuesday, Ontario Transportation Minister Caroline Mulroney urged the company to work with her government to come to an agreement to save jobs at the plant.

Bombardier confirmed Wednesday it would lay off 550 workers at its Thunder Bay plant effective Nov. 4. The news was also delivered by the company to The GO Transit and TTC contracts are the only current jobs being done at the Thunder Bay plant, he said. However, those contracts will both wrap

The federal Liberals are blaming Queen’s Park for the layoffs, accusing the Ontario government of starving the city of new contracts, and threatening a 107-year tradition of railcar manufacturing in Thunder Bay.

And the union representing Bombardier Transportation workers in Thunder Bay has identified Donald Trump and the U.S. president’s Buy America policies for the deep slump in orders for the rail cars made at the Lakehead since 1912.

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But none of that is quite true.

Bombardier to lay off half the 1,100 workers at Thunder Bay, Ont. railway plant

Bombardier to lay off half the 1,100 workers at Thunder Bay, Ont. railway plant Bombardier Inc. is laying off half of the 1,100 workers at its Thunder Bay, Ont., railway car plant, according to a federal government source. Two major contracts in Ontario — for the Toronto Transit Commission streetcars and Metrolinx GO Transit rail cars — are slated to halt by the end of the year. Local union president Dominic Pasqualino said he fears more job losses are on the horizon beyond the initial 550 as the contracts wind down. “This business is cyclical. Things go up, things go down. But the thing is, it doesn’t look like things are going to go back up,” he said in an interview.

Good morning! After offloading much of its aircraft business, Bombardier is also making deep cuts in its railway division. The Montreal-based company said Tuesday it’s laying off half its workforce at the Thunder Bay railway plant due to lack of orders and U.S.’s buy-American policies.

Bombardier is laying off 550 workers at its Thunder Bay , Ont., plant, according to a federal government source. David Van der Wee, the company 's chief operating officer for the Americas, told CBC News in June that layoffs would be coming, but said the company remains committed to the

The blame in Thunder Bay lies chiefly with about a decade of mismanagement at Bombardier Transportation. As Toronto public-transit users know better than most, the company has come close to destroying its reputation for prompt delivery of defect-free equipment.

The nadir came last year, when New York City, a flagship Bombardier Transportation customer, became so disgusted by the company’s chronic delivery delays and faulty equipment that it banned it from even bidding on its latest contract for new equipment.

Also last year, Via Rail Canada handed a prized $1-billion contract to Bombardier archrival Siemens AG.

Some of that Via work would have come to Thunder Bay.

It is hypocrisy, of course, for the feds to depict the Ontario government as the heavy in Thunder Bay, when Ottawa green-lighted the decision by Via, a federal Crown corporation, to offshore railcar jobs to Germany.

Bombardier to appeal Brazil ruling over alleged bidding infractions

Bombardier to appeal Brazil ruling over alleged bidding infractions MONTREAL - Bombardier Inc. says it intends to appeal a Brazilian administrative tribunal ruling that concluded the railway car manufacturer and 10 other companies manipulated contract bids. 

Last remaining train maker in UK halves its workforce and calls on government for rethink after losing £3bn contract.

We urge the company to work with the provincial government to come to an agreement that would see jobs remain at the Thunder Bay plant,” Mulroney Pasqualino laid part of the blame for a lack of new contracts on the province, however, saying that “our customer is the government, it's not individuals.”

Queen’s Park, by contrast, has spent months trying to scare up work for the facility in Thunder Bay. But as Torontonians also well know, the entire GTA public-transit system, inner city and regional, has been in upheaval as Premier Doug Ford has struggled to reorganize it — to what purpose and in what way remains unclear.

Until Ford’s plans are resolved, Queen’s Park — chief buyer of BT Thunder Bay’s output — won’t be placing sizable orders.

Pinning the blame on Trump doesn’t hold water either. The truth is, the U.S.’s Buy America practices pre-date the current president by decades. Their existence when Bombardier secured its first U.S. rail contract, in the 1980s, required the Montreal company to build those cars at a new assembly plant in New York state.

That is the nature of the rail-equipment business worldwide. Products are built as close to the customer as possible.

The good news is that Bombardier’s recent efforts to turn its railcar division around seem to be working.

Since the beginning of this year alone, the company has won contracts to build train cars in Hamburg, metro cars for Delhi, tramcars in Brussels and train sets in Adelaide, Australia.

Bombardier to appeal Brazil ruling over alleged bidding infractions

Bombardier to appeal Brazil ruling over alleged bidding infractions MONTREAL — Bombardier Inc. says it intends to appeal a Brazilian administrative tribunal ruling that concluded the railway car manufacturer and 10 other companies manipulated contract bids. Brazil's economic defence administrative council imposed fines of around $175 million against a "cartel" it found had manipulated at least 26 tenders between 1999 and 2013 in four Brazilian states. "Bombardier strongly disagrees with this judgment, which is based on a partial reading of [the council's] evidence in an administrative proceeding characterized by flagrant violations of constitutional principles, including the reasonable application of the law," the company said

The Canadian group Bombardier announced Wednesday it will lay off 550 employees from its Thunder Bay , Ontario plant, cutting the site's workforce in half. The company said in a statement that the decision was unavoidable because a contract to build tramways and streetcars for the city of

We've heard a lot of rhetoric lately suggesting that countries like the US are losing valuable manufacturing jobs to lower-cost markets like China, Mexico and Vietnam — and that protectionism is the best way forward.

Bombardier has just won preferred-bidder status for a $4.5-billion monorail in Cairo. And Bombardier Transportation will perform the first overhaul of train cars in the Eurotunnel’s 25-year history — cars also originally built by Bombardier.

By now, there is enough substance to the company’s turnaround to believe that Bombardier’s Thunder Bay plant has a promising future. Thunder Bay is, after all, one of the oldest and best railcar makers in the world.

Now that Bombardier has shed most of its nonrail assets, the company’s future is tied to achieving a high level of customer satisfaction from clients in the 28 countries in which this global ambassador of Canadian technology operates.

With its central location in North America, Thunder Bay continues to be an ideal location for serving the North American boom in transportation infrastructure.

The short-term pain of layoffs, which may turn out to be temporary, is a legacy of a long stretch of Bombardier Transportation mismanagement. That malaise is giving way to sound managerial practices, and that gives hope that Thunder Bay might someday have a bigger workforce than ever.

David Olive is a Toronto-based business columnist for the Star. Follow him on Twitter: @TheGrtRecession

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Federal Liberals blast Ontario Tories over looming Bombardier layoffs.
OTTAWA — Looming layoffs at Bombardier's railway car plant in Thunder Bay, Ont., are creating a political row between Queens Park and Parliament Hill. The federal Liberals and Ontario Tories are blasting each other in a bid to lay political responsibility for the impending loss of 550 jobs at each other's feet. Federal Labour Minister Patty Hajdu says in a statement that Ontario Premier Doug Ford failed to deliver on a promised contract for the facility in her hometown that could have saved jobs. "While our federal government and the hardworking people in my community worked to save jobs at the Bombardier plant, Doug Ford sat on his hands and made empty promises.

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