Bombardier is set to lay off half of its 1,100 workers in Thunder Bay, according to a federal source of The Canadian Press.

The layoffs come as two major contracts – for the Toronto Transit Commission streetcars and Metrolinx GO Transit – are scheduled to halt by December.

Ontario Transportation Minister Caroline Mulroney says the province is urging Bombardier to come to an agreement that would see some jobs remain.

Ontario’s NDP Opposition is urging the provincial government to take swift action to protect the jobs.

Bombardier has been downsizing its aerospace and rail operation for several years to improve profitability.

Local union president Dominic Pasqualino says a lack of new contracts means more job losses in the future. Pasqualino says Washington’s backing of Buy America-like clauses requiring a minimum threshold of local content are part of the problem.