CAE recalls 1,500 employees, builds ventilators

Open this photo in gallery:

Training specialist CAE Inc. said on Monday it would recall 1,500 furloughed employees and had signed a contract with Canada to make 10,000 ventilators in response to the coronavirus pandemic.

Governments around the world are turning to industry to boost the number of available mechanical breathing devices that can supply air and oxygen, crucial for the care of people who suffer lung failure, which can be a complication of COVID-19.

Companies such as Europe’s Airbus SE and U.S. automaker General Motors Co. are building ventilators while Canadian plane and train maker Bombardier Inc. will help medical company O-Two Medical Technologies produce the equipment in Ontario. Montreal-based CAE, which specializes in civil aviation training, and manufactures full-flight simulators, said it expects the ventilators will start being delivered in early May to health authorities for certification.

The training specialist, which also provides medical simulation training products, said it is also bringing Canadian employees back as part of a government wage subsidy program that helps put workers back on payroll.

The federal government on April 11 approved a wage subsidy program, known as the Canada Emergency Wage Subsidy (CEWS), which would cover up to 75 per cent of workers’ wages for businesses that have suffered because of the pandemic.

CAE chief executive officer Marc Parent said the wage subsidy program will allow Canadian industry to put staff back on payroll and be “better positioned to rebound when the current challenges have passed.”

The aviation industry has been hard hit by the novel coronavirus pandemic, which has led to cancellation of flights and grounded aircraft worldwide.

The majority of the recalled employees are based in Montreal and will work from home. Earlier this month, the company said it would furlough 2,600 of its 10,500 employees, freeze salaries and place some of its employees on a reduced work week to cut costs.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.