Bombardier Inc. (TSX:BBD.B) and the Canadian Auto Workers reached a tentative three-year agreement Tuesday, avoiding a strike at the company's airplane plant in Toronto.
The CAW had warned that its members would walk out if a deal wasn't reached by 10 a.m. ET Tuesday but the deadline passed, the two sides kept talking and they reached an agreement several hours later.
A union spokesman said Bombardier Aerospace had been unsuccessful in its attempt to increase the number of temporary workers at the plant. He said the union had also maintained health-care benefits for current and future retirees.
The CAW's Jerry Dias also said the agreement calls for wage increases but he declined to release specific details.
The former De Havilland plant assembles the Q400 turboprop planes used by airlines around the world and the Global family of business jets. It also makes wings for two models of Learjet business jets that are assembled in Wichita, Kan.
The union represents 2,750 workers at the Toronto plant, including 200 currently laid off.
