Bombardier testing Grits’ promises to middle class, Tories say
PM taking soft stance, opposition says
Justin Trudeau refused Monday to denounce Bombardier for enriching its executives even as the company rakes in nearly $1 billion in taxpayer money, drawing opposition charges that the Liberals are on wobbly legs when it comes to standing up for the middle class.
The ensuing public outcry has prompted the Montrealbased aerospace firm to put off for a year giving six executive officers more than half of the compensation it had planned — and has also prompted the prime minister to change his tone.
Last week, Trudeau said the government respects “the free market and the choices that companies will make.” On Monday, he said the government is “obviously not pleased” with Bombardier’s decision, “but we are happy to see it make decisions that are fixing that for Quebecers’ and Canadians’ confidence.”
Bombardier is eliminating 14,500 jobs around the world by the end of next year, part of a restructuring plan aimed at helping the company turn itself around. The plan includes federal and provincial money: a $372.5-million federal loan for Bombardier’s CSeries and Global 7000 aircraft programs, and $1 billion from Quebec.
Last week, the company issued a proxy circular showing that six executives were in line for a nearly 50 per cent increase in compensation, most of which was to be granted in 2019.
The fact the company can afford to enrich its senior leaders while laying off employees suggests the taxpayer money they were given by the government is doing nothing to help Canadians, said interim Conservative leader Rona Ambrose.
“This is not helping the middle class. This is lining the pockets of the one per cent of the one per cent with tax dollars,” Ambrose said during question period.
Anger at the planned pay raises culminated in a weekend protest at the company’s Montreal headquarters and a late night climb-down by Alain Bellemare, the chief executive officer, who declared he was asking Bombardier’s board of directors to delay the payments.
The company underestimated public anger and is now paying attention, Bellemare said.
The Liberals, however, remain tone-deaf, opposition MPs charged.
“We have seen anger expressed by voters in both the United States and in Canada about how out of touch elites are,” Conservative leadership candidate Michael Chong wrote in an email to supporters. “The Bombardier example is one reason why this anger is out there. And citizens and taxpayers have every right to be upset.”