Unions Say Airbus Is Irresponsible to Hold Back Details on Possible Job Cuts

Nov. 1, 2006
They said they were concerned that Airbus was starting to lay off thousands of temporary workers and putting pressure on suppliers who are often completely dependent on the aircraft maker.

Unions representing Airbus workers said Tuesday that management was irresponsible for refusing to give detail of how the aircraft maker plans to deal with its current crisis.

Airbus' new chief executive Louis Gallois warned on Oct. 9 of "painful" job losses as the company tries to cut costs to recoup a two-year delay to its A380 superjumbo program that will take 4.8 billion euros ($6.09 billion) from its profit over four years.

The European Metalworkers' Federation said its 16 member unions involved in plants owned by European Aeronautic Defense & Space Co., Airbus' parent company, wanted to know exactly what management was planning.

"The fact that management has said that the work on the content of (the restructuring program) will take several months leads to much uncertainty and worry among employees about their future, and this is irresponsible," said EMF General Secretary Peter Scherrer.

Some 40 union officials representing EADS plants in Germany, Spain, France, Britain, the Netherlands and Belgium met in Brussels on Tuesday, saying they would not allow one plant to be played off against another and would not accept site closures and job losses.

They said they were concerned that Airbus was starting to lay off thousands of temporary workers and putting pressure on suppliers who are often completely dependent on the aircraft maker.

Scherrer said the group would try to discuss possible solutions with management.

German Chancellor Angela Merkel is planning to meet with EADS co-chief executives this week as the government works out a strategy to keep the company on a level balance with partner and neighbor France that may see it build up its stake in Airbus.

Finance Minister Peer Steinbrueck has said the government was weighing whether to take a joint stake in EADS along with private investors and banks in an effort to secure jobs.

Steinbrueck said the government was considering the notion so as to help stabilize the company in the wake of the delays

Germany is fearful of jobs losses at the Airbus plant in Hamburg on top of the decision to cut 1,000 temporary jobs and reduce working hours at its seven other German operations.

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