Airbus sees 1,000 German jobs at risk without parts unit spinoff - source

Montana Aerospace AG

08/08/2021 13:30

By Alexander Hübner
    MUNICH, Aug 8 (Reuters) - Airbus  AIR.PA  has warned
employees of hundreds of possible job losses at its small-parts
manufacturing buiness in Germany if the unit isn't hived off in
line with a cost-cutting strategy set out in April, a source
familiar with the plan told Reuters.
    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
spinning off the activities, said the source who is familiar
with plans presented to its works council and trade unions.
    Under the shakeup set out four months ago, Airbus's Premium
Aerotec unit in Germany would be split off, with part combined
with other Airbus manufacturing plants and the rest folded into
a new business specialising in small mass-produced "detail"
parts which could be spun off.  urn:newsml:reuters.com:*:nL1N2ME1XK
    Premium Aerotec makes components for commercial and military
aircraft, mainly in Augsburg and Varel near Bremen.
    The unit has been lossmaking for years and Airbus argues
that with a new owner it could also work for competitors or win
customers from other industries, and thus better utilise its
workforce.
    The planemaker has previously said it calculates that
Premium Aerotec is between 25% and 30% more expensive than other
suppliers. Airbus declined to comment when asked about the
numbers of jobs at risk under the restructuring.
    Trade union IG Metall is opposed to the spinoff, fearing job
cuts and less favourable working conditions after a break-up of
the unit, at which fuselages of Airbus aircraft are also
assembled.
    The issue is taking on a political dimension. Finance
Minister Olaf Scholz, the Social Democrats' (SPD) chancellor
candidate for September's federal election, is planning a
"solidarity visit" on Monday to Premium Aerotec in Varel.
    Airbus has also promised to examine a future for parts
production within the group.
    "Our analysis, which we shared with employee representatives
at the end of July, clearly showed that the internal route would
be much more painful for employees to achieve competitive cost
structures," a spokesperson said.
    Therefore, he said, the company wanted to find a better
owner who could preserve more jobs. Switzerland's Montana
Aerospace  AERO.S  has already expressed interest.
    "The window of opportunity to reposition is now, before
production rates return to pre-crisis levels," the Airbus
spokesperson said.

 (Reporting by Alexander Huebner
Writing by Paul Carrel and David Holmes)
 ((alexander.huebner@thomsonreuters.com))