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Nov 16, 2018

Bombardier union rep calls for Quebec intervention to protect jobs

Bombardier shares plunge on Quebec regulator probe

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MONTREAL -- The head of Quebec's aerospace union is calling on the province to intervene in Bombardier (BBDb.TO), a day after the premier brushed off the idea of government assistance as the company faces plummeting stock and an uncertain future for its commercial aircraft operations.

David Chartrand says in an open letter that Quebecers see Bombardier as "bandits with ties," but is demanding rapid intervention that obtains commitments from the company around employment levels.

Yesterday, Premier Francois Legault expressed scant hope for Bombardier's CRJ series unless it finds an international partner, with about 1,000 jobs hanging in the balance in Mirabel, Que.

Hours later, Quebec's financial market regulator announced it is reviewing Bombardier's executive compensation plan, calling on the plane-and-train maker to suspend all related trades, which the company agreed to.

The Montreal-based company has said that the plan -- announced last August shortly before its share price embarked on a descent of more than 60 per cent -- allows some of its senior executives to sell shares in some circumstances as an added incentive in performance-based compensation.

On Friday, Bombardier shares it a 52-week low by falling 16.3 per cent to $1.75 in mid-morning trading.