SPAIN: Spanish unions fear job cuts at troubled Airbus

Leaders of several Spanish workers unions said on Wednesday (October 11) that Spain has to make efforts to protect the EADS and Airbus work carried out in Spain in order to safeguard jobs as the aerospace firm prepares to push through a "painful" restructuring at its planemaking unit Airbus. "This is a critical moment which has to be faced with critical measures, with reversible measures but, of course, it isn't´ a reversible measure to proceed with lay offs of workers who have been training and growing within the (aeronautical) sector," Carlos Romero from the Spanish General Union of workers told reporters after a meeting in Madrid with representatives of state holding company SEPI. The new Airbus head, EADS Co-Chief Executive Louis Gallois, said on Tuesday (October 10) the group's structure had to be simplified and that decisions would be made in the next few months that could lead to job losses among the company's 55,000 staff. This came after problems related to the production of Airbus's flagship A380 superjumbo aircraft led to two-year delays in deliveries and a 4.8 billion-euro ($6.03 billion) future profit shortfall, plunging the firm into crisis. Spanish government officials have said they would like to double the stake to 10 percent. However, EADS Co-Chairman Manfred Bischoff was quoted in Les Echos newspaper as saying EADS would welcome a larger Spanish stake but not from the state. Spain has a seat on the board, but no voting rights. Airbus Spain employs 3,000 workers in three factories -- two outside Madrid and one in the south of Spain. A number of other companies supply parts to Airbus, meaning thousands of jobs could be affected by job cuts in Spain. Spanish aero parts maker ITP said on Wednesday it would fire 180 workers because of the A380 delays. Airbus is significantly lagging arch rival Boeing in orders this year as it struggles to get the A380 back on track and doubts linger over its planned A350 mid-sized model. Boeing meanwhile has been notching up orders for its planned mid-sized 787 Dreamliner and a larger version of the iconic 747 jumbo, the 747-8. This was underscored on Wednesday as Boeing announced A380 launch customer Singapore Airlines had finalised its order for 20 Boeing 787-9s, with purchase rights for 20 additional planes. Gallois said on Tuesday he hoped the EADS board would give its go-ahead for the A350 in the next few weeks to compete in a market segment that makes up 40 percent of the total. Shares in EADS were 1.2 percent higher at 21.14 euros by 0934 GMT in Paris.

ITN Source | October 12, 2006

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