BUSINESS

Bombardier To Outsource Canadian Jobs As It Waits For Bailout: Report

03/23/2016 02:42 EDT | Updated 03/24/2017 05:12 EDT
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A Bombardier logo sits on a presentation platform at Bombardier Inc.'s Litchurch Lane railcar factory in Derby, U.K., on Thursday, May 15, 2014. Bombardier's transportation unit won $8 billion of new business in the first three months of 2014 and had a record backlog of $38.4 billion, including a $2.1 billion train deal with Transport for London. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
TORONTO — The federal innovation minister says the government is taking into account the possibility Bombardier may outsource jobs when determining whether to give up to US$1 billion to the aerospace manufacturer for its CSeries planes.

Navdeep Bains says that is part of the government's due diligence as it decides whether to help the company, which has had trouble selling the aircraft.

Bains would not say whether any outsourcing of jobs would be a deal breaker for federal support.

navdeep bains

Innovation Minister Navdeep Bains says the government is aware that Bombardier may outsource Canadian jobs, as the federal government weighs a billion-dollar bailout for the transport manufacturer. (Canadian Press photo)

Bombardier Inc. asked the federal government late last year for the money, which would match the amount offered by the Quebec government.

The Globe and Mail, citing sources it said were familiar with the situation, reported earlier this week that Bombardier plans to move about 200 Toronto jobs that help build the company's Q400 planes to Mexico and China.

Bombardier spokeswoman Marianella de la Barrera would not confirm the report but says the company is exploring ways to reduce costs of its Q400 planes.