MUNICH (Reuters) – Airbus (AIR.PA) has warned its employees that hundreds of jobs could be lost at its small parts manufacturing facilities in Germany if the unit is not rebuilt according to its cost-cutting strategy. A source familiar with the plan told Reuters in April.
The source, who is familiar with the plans submitted to the Labor and Trade Union Council, said the group sees 1,000 of its 2,500 jobs in Germany at risk if it continues to manufacture parts within the group rather than separate activities.
As part of the changeover that began four months ago, the Aerotech Premium Airbus division in Germany will be split, part of which will be merged with other Airbus factories and the rest to form a new company that specializes in small detail mass-produced “” parts that can be woven. Continue reading
Premium Aerotec manufactures components for commercial and military aircraft, mainly in Augsburg and Farel near Bremen.
The unit has been making losses for years, so with a new owner, Airbus can also work with competitors or win customers from other industries and thus better spread its workforce.
The aircraft manufacturer previously said it had calculated that Premium Aerotec would be 25-30% more expensive than other suppliers. Airbus declined to comment when asked how many jobs are at risk of restructuring.
Union IG Metall rejects the separate offer because it fears job cuts and less favorable working conditions after the break-up of the unit in which Airbus is also assembled.
The issue takes on a political dimension. Finance Minister Olaf Schultz, the SPD’s candidate for the federal election in September, is planning a “solidarity visit” to Premium Aerotech in Farrell on Monday.
Airbus also promised to look into the future of parts manufacturing within the group.
“Our analysis, which we shared with employee representatives at the end of July, clearly showed that the internal path would be more painful for employees to achieve competitive cost structures,” a spokesperson said.
So, he said, the company wanted to find a better owner who could keep more jobs. Swiss company Montana Aerospace (AERO.S) has already expressed interest.
An Airbus spokesman said: “The opportunity to restore the situation is now before production rates return to pre-crisis levels.”
(Alexander Hubner Report) By Paul Carell and David Holmes
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