About 250 employees at Bombardier's Wichita facilities will lose their jobs as the aircraft company plans to end production of its Learjet and instead focus on manufacturing other, more profitable aircraft families.
While production closes, Bombardier will ramp up service and maintenance work on the Learjet in Wichita.
The layoffs will impact workers over the course of the next year, as Learjet production will phase out beginning this fall. Bombardier currently employs around 1,200 people in Wichita, with new layoffs making up just more than 20% of the Wichita workforce.
"With more than 3,000 aircraft delivered since its entry-into-service in 1963, the iconic Learjet aircraft has had a remarkable and lasting impact on business aviation," Éric Martel, president and CEO, said in a statement. "However, given the increasingly challenging market dynamics, we have made this difficult decision to end Learjet production."
Included in the 250 Wichita positions are a mix of unionized and salaried workers. Within the union contract, there are callback provisions that could allow some workers to return or be reclassified depending on the needs of Bombardier in Wichita, said company spokesperson Mark Masluch. Any such changes would be made through collective bargaining.
"This announcement certainly heralds the end of an era, and we're quite concerned for the workers being impacted here," Kansas Secretary of Commerce and Lt. Gov. David Toland told The Eagle.
Restructuring
The move to end Learjet production comes as the aircraft company restructures to weather the COVID-19 pandemic. While Bombardier shifts away from production, it will focus on serving the existing fleet of Learjet and the companies that operate those aircraft, Masluch said.
To do so, Bombardier on Thursday launched the Learjet RACER remanufacturing program for Learjet 40 and Learjet 45 aircraft. The program, which will only be offered through Bombardier's Wichita facility, will include enhancement work on the existing Learjet. That will include interior and exterior components, new avionics, high-speed connectivity, engine enhancements and improved aircraft maintenance costs.
Wichita will also continue to serve as Bombardier's primary flight test center, which is key for the facility moving forward, Masluch said.
The jobs lost
Bombardier, which is based in Montréal, Canada, will cut around 1,600 jobs across the company. About 700 of the layoffs will be in Quebec and 100 in Ontario, executives said on a conference call Thursday morning.
The majority of the 1,600 job cuts will be in white-collar, office positions, Martel said. The exception is in Wichita, where shop floor workers primarily will be affected by the cuts.
"Workforce reductions are always very difficult, and we regret seeing talented and dedicated employees leave the company for any reason," Martel said. "But these reductions are absolutely necessary for us to rebuild our company while we continue to navigate through the pandemic."
The Machinists Union District Lodge 70, which represents aviation manufacturing employees at a variety of Wichita workplaces, found out about the layoffs late Wednesday night, said Cornell Beard, the union's directing business representative.
Beard said it helps to have good union contract language to slow down the layoff process. He appreciates the notice, considering the cuts won't begin until later in the year, and hopes it will allow time for the affected workers to find new jobs.
The collective bargaining agreement between the Machinists Union Local 639 and Bombardier expires in October, Beard said. New negotiations could begin as soon as the summer.
"Everyone's blaming COVID, and I think that plays a part," Beard said. "But I also think it's bad decisions."
"We're really disappointed."
Out of the 250 people being laid off, about 100 are represented by the Machinists Union in Wichita.
"A tough year" for aviation workers
In more typical times, those workers would easily be hired by other aviation manufacturing companies in Wichita, Beard said. But since those businesses have already laid off their own workers, Bombardier employees are less likely to find opportunities there. Union contracts at other employers ensure they call back their own workers first, based on seniority.
"It's been a tough year" for aviation workers, Beard said.
However, he doesn't think Bombardier's announcement changes what the economic recovery will look like in Wichita overall.
Part of that recovery is the ongoing business recruitment at the state level and in the Wichita region, said Toland, the commerce secretary and lieutenant governor. The state currently has over 350 active economic development leads, 45% of which are in advanced manufacturing, Toland said.
The goal is for those leads to create more jobs.
The cyclical nature of the aviation sector means Wichita has seen the ups and downs, and Toland acknowledged that Wichita is seeing a challenging down cycle as COVID-19 impacts demand. He also said it's a chance to showcase the existing talent within Wichita's workforce through training and upskill opportunities.
"It is part of this larger strategy to make sure we stay strong in aviation, but have a focused effort around diversification," Toland said.
The Workforce Alliance of South Central Kansas recently received a nearly $10 million federal grant to offer more training and educational opportunities for workers who want to move up, including in advanced manufacturing such as aviation.
In April, anyone who is interested can call the Workforce Alliance at 316-771-6800 or schedule an appointment at workforce-ks.com/virtual-career-center/career-training.
Beard, with the Machinists Union, said AMP mechanics will be one of the most sought after positions for anyone wishing to up their skills within manufacturing.
Service work is currently about 20% of Bombardier's business, Martel, the CEO, told reporters Thursday. The company plans to grow that service business as part of its restructuring. Overall, Bombardier hopes to save about $400 million annually by 2023 and about $100 million in 2021.
By the end of the year, Bombardier expects to have a global workforce of about 13,000 employees.
When asked about the future of the Wichita facility, Martel said Wichita is a very important site for Bombardier, where the company has its test program capacity and a growing service platform.
"The site will be busy," Martel told reporters. "We have very capable people and dedicated employees in Wichita. There will be movement in the mix of work they will do, but Wichita will remain a prime site for Bombardier."
