Airbus to lay off 10,000 workers
Waiting for the axe: Employees enter the Airbus facility in the northern German town of Nordenham, February 28. Airbus workers downed tools and staged protests as a company shake-up was expected to confirm plans for factory sales and thousands of job cuts. Some 10,000 jobs across four European countries are set to go including many contractors, industry sources said, as Airbus looks to regain ground it is losing to surging US archrival Boeing Company. Picture: Reuters
Thursday, March 1, 2007
EUROPEAN airliner maker Airbus told staff representatives yesterday that its restructuring plan would cost 10,000 jobs, half of them at subcontractors, a union source said.
Airbus had decided to sell, or hand over to partners, six of its sites in Europe under its restructuring plan called "Power8", the source said.
Company President Louis Gallois presented details of the plan, to make huge economies and restructure the business, to union representatives at the group's headquarters here in southwestern France, as required by law.
Airbus was to finally unveil its restructuring plan yesterday amid signs of growing frustration in its workforce and strong resistance from trade unions.
The plan is also expected to include the outsourcing of manufacturing, divestment of factories, as well as a reorganisation of assembly work. It aims to save the company €5 billion (US$6.6 billion) by 2010 and €2 billion per year thereafter.
The announcement comes after the company on Tuesday faced a spontaneous protest from workers at a factory in northern France who downed tools and assembled in front of the management office to decry feared job cuts.
The incident in Meaulte, northeast of Paris, could be a prelude to a broader struggle between Airbus and labour organisations, which have said they will fight factory closures and redundancies.
In Brussels on Tuesday, union officials from Britain, France, Germany and Spain met to coordinate their strategies and hinted that the first strike action could be only weeks away.
Airbus's 56,000-strong workforce have been in limbo since October, when the group first announced the outlines of a restructuring plan called "Power8".
Implementation of the plans has been held up since October because of tensions between France and Germany over where cuts will fall.
In the meantime, a flurry of speculative and contradictory press reports have named factories that are set to be axed.
Airbus unveiled the details on Wednesday after winning approval from parent company EADS to press ahead with the cost-cutting scheme.
Airbus is owned by EADS, which is controlled by French shareholders media group Lagardere and the French state, who together own 22.5 per cent, and German shareholder car maker DaimlerChrysler, which also holds 22.5 per cent.
French Prime Minister Dominique de Villepin said last week the restructuring plan would lead to about 10,000 job losses at Airbus's 16 factories, but without forced redundancies.
This way of cutting jobs, which depends on early retirement, voluntary departures and job transfers, was requested by French President Jacques Chirac and German Chancellor Angela Merkel at a meeting last Friday.
The figure of 10,000 was later described as premature by the German government, and the German newspaper Die Welt reported on Tuesday that job losses would total 7,700: 4,200 in France and 3,500 in Germany.
On Wednesday, the Financial Times said 4,200 jobs would go in France, about 4,000 in Germany, 1,500 in Britain and 500 jobs are at risk in Spain.
Late on Tuesday, French radio station BFM, citing internal company sources, said Airbus planned to divest three factories and close four in Germany, France, Britain and Spain.
On Monday, German magazine Focus had reported that Airbus would dispose either entirely or partially of two factories in France, in Saint-Nazaire and Meaulte, and two in Germany, in Nordenham and Varel.
The Financial Times said Airbus would announce plans to open a composites factory in Britain as part of the plan.
Analysts say the plan will bring the strategy of Airbus into line with that of its main competitor Boeing.
Since 2000, US group Boeing has focused on doing only the most important assembly and commercial work and has outsourced much of its manufacturing to sub-contractors.
Airbus employs 56,000 people, with 22,000 in France, 21,000 in Germany, 10,000 in Britain and 3,000 in Spain. AFP, Reuters
Airbus had decided to sell, or hand over to partners, six of its sites in Europe under its restructuring plan called "Power8", the source said.
Company President Louis Gallois presented details of the plan, to make huge economies and restructure the business, to union representatives at the group's headquarters here in southwestern France, as required by law.
Airbus was to finally unveil its restructuring plan yesterday amid signs of growing frustration in its workforce and strong resistance from trade unions.
The plan is also expected to include the outsourcing of manufacturing, divestment of factories, as well as a reorganisation of assembly work. It aims to save the company €5 billion (US$6.6 billion) by 2010 and €2 billion per year thereafter.
The announcement comes after the company on Tuesday faced a spontaneous protest from workers at a factory in northern France who downed tools and assembled in front of the management office to decry feared job cuts.
The incident in Meaulte, northeast of Paris, could be a prelude to a broader struggle between Airbus and labour organisations, which have said they will fight factory closures and redundancies.
In Brussels on Tuesday, union officials from Britain, France, Germany and Spain met to coordinate their strategies and hinted that the first strike action could be only weeks away.
Airbus's 56,000-strong workforce have been in limbo since October, when the group first announced the outlines of a restructuring plan called "Power8".
Implementation of the plans has been held up since October because of tensions between France and Germany over where cuts will fall.
In the meantime, a flurry of speculative and contradictory press reports have named factories that are set to be axed.
Airbus unveiled the details on Wednesday after winning approval from parent company EADS to press ahead with the cost-cutting scheme.
Airbus is owned by EADS, which is controlled by French shareholders media group Lagardere and the French state, who together own 22.5 per cent, and German shareholder car maker DaimlerChrysler, which also holds 22.5 per cent.
French Prime Minister Dominique de Villepin said last week the restructuring plan would lead to about 10,000 job losses at Airbus's 16 factories, but without forced redundancies.
This way of cutting jobs, which depends on early retirement, voluntary departures and job transfers, was requested by French President Jacques Chirac and German Chancellor Angela Merkel at a meeting last Friday.
The figure of 10,000 was later described as premature by the German government, and the German newspaper Die Welt reported on Tuesday that job losses would total 7,700: 4,200 in France and 3,500 in Germany.
On Wednesday, the Financial Times said 4,200 jobs would go in France, about 4,000 in Germany, 1,500 in Britain and 500 jobs are at risk in Spain.
Late on Tuesday, French radio station BFM, citing internal company sources, said Airbus planned to divest three factories and close four in Germany, France, Britain and Spain.
On Monday, German magazine Focus had reported that Airbus would dispose either entirely or partially of two factories in France, in Saint-Nazaire and Meaulte, and two in Germany, in Nordenham and Varel.
The Financial Times said Airbus would announce plans to open a composites factory in Britain as part of the plan.
Analysts say the plan will bring the strategy of Airbus into line with that of its main competitor Boeing.
Since 2000, US group Boeing has focused on doing only the most important assembly and commercial work and has outsourced much of its manufacturing to sub-contractors.
Airbus employs 56,000 people, with 22,000 in France, 21,000 in Germany, 10,000 in Britain and 3,000 in Spain. AFP, Reuters
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