Bombardier layoffs cause British discomfort
Written by William C. Vantuono, Editor-in-ChiefA rare 2011 setback for Bombardier Transportation has prompted the company to plan layoffs for 1,400 workers in Great Britain. Bombardier says it will let go 446 permanent employees and 983 temporary workers at its Derby, England, facility, following its failure to land a contract to build passenger trains for Thameslink, a regional rail line running from Bedford through London to Brighton.
A consortium led by rival Siemens AG was awarded a $2.25 billion contract in June to supply 1,200 cars. Britain’s Department for Transport says Siemens will hire about 650 people in Britain to build the trains.
Bombardier’s announcement, made Tuesday, has prompted British political interests to voice larger concerns over open market policies within the European Union. Some have suggested France and Germany have adhered to EU rules somewhat haphazardly, sometimes favoring hometown companies during bidding procedures.
Last month Bombardier landed a 354 million pound ($566 million) contract from Transport for London (TfL) to install Communications-Based Train Control (CBTC) on London Underground’s Sub-Surface Line (SSL) network. Bombardier also scored in Australia during June, landing a $265 million stake in a $1.1 billion contract with the Queensland state government.
