Delays In Deliveries Would Affect A320 Family

There may only be one phrase that sends more shivers down the spines of executives at Airbus than "production delay" -- "worker action." And employees at Airbus plants throughout Germany know it.

On Friday, more than 24,000 workers at the European planemaker's plants in Hamburg, Bremen, Laupheim and Varel staged demonstrations to protest possible job cuts, as Airbus parent company EADS prepares to unveil a major restructuring plan. Airbus employees, suppliers, and supporters joined together to show their displeasure with the possibility thousands of German jobs would be lost under that plan.

"Today's demonstrations in Germany mark only the beginning of a possible Europe-wide wave of protest should the EADS management plan mass layoffs and site closures," said Peter Scherrer, General Secretary of the European Metalworkers Federation.

The EMF and other unions fear the impending restructuring could lead to as many as 8,000 jobs losses in Germany, and another 8,000 jobs lost at various Airbus suppliers. The planemaker directly employs over 22,000 people in Germany.

Should EADS chose to cut those jobs as part of its restructuring plan for Airbus, workers say they'll slow down deliveries of Airbus' most popular line of aircraft: the A320 family. Hamburg is responsible for about half of all narrowbody deliveries, with one jet produced every 9.3 working hours.

Reuters reports the German government is also concerned that country's plants could see the brunt of those cuts, if the existing balance of power between Germany and France shifts. There are similar fears on the French side of the Franco-German partnership, as well: about 100 French workers also protested Friday, outside Airbus' headquarters in Toulouse, over reports up to 10,000 jobs could be lost... most of those in France.

Job cuts are seen as inevitable by many, as EADS fights to recover from $6.5 billion in losses against profits following a series of problems with the Airbus A380. EADS plans to reveal its restructuring plan for Airbus on February 20.

FMI: www.airbus.com