Airbus troubles worry Welsh workers

BROUGHTON, Wales - Airbus workers and their families in Broughton are anxious that the company's difficulties may mean job cuts at its wing assembly factory, the main employer in this north Wales town.

The world's best-selling planemaker is looking to cut jobs and possibly sell factories to lower costs, mirroring steps taken by US rival Boeing Co. that have left it the leaner, more competitive firm.

Last week, German state and federal governments voiced interest in taking stakes in Airbus parent EADS in an attempt to safeguard German jobs, while Spanish authorities said they too would like a bigger role in EADS.

At the same time, the UK severed decades of association with Airbus as British defence firm BAE Systems finalised its sale of 20 per cent of the planemaker, leaving it 100 per cent owned by EADS, whose top shareholders are French, German, Russian and Spanish.

"It's very quiet. They're worried about their jobs," said Julie Mainwaring, behind the bar at the Offa's Dyke pub in Broughton.

Sporting Airbus logos on their clothing, workers coming off shift had the company's troubles on their minds as they visited the town's retail park.

"Everyone's doom and gloom," said an Airbus worker who declined to be named. He said workers are on edge because of a rumour at the plant that news on jobs could come in six to eight weeks. "Just before Christmas ...lovely," he said.

Some remain confident Airbus could not easily replace the purpose-built factory or the expertise of the Broughton workers.

Airbus wings have been built here for decades and are regarded as one of the most difficult parts of a plane to manufacture.

A recent report from brokerage Goldman Sachs which said Airbus could slim operations by selling as many as seven of its 16 plants noted Broughton would have to stay within the company, because it has such a critical role in the manufacturing process.

"It's passed down from generation to generation, that someone works for Airbus here," said Mark Williams, a 42-year-old line manager on the A380 wing programme.

Not all see the Broughton heritage as a guarantee of job security, however.

"It would make you think that people here are safe, but that's not the way they feel," said the wife of a subcontracted worker at the Airbus wing plant.

"There's no British stake in Airbus now. So it must make you feel vulnerable," she said.

Airbus is set to deliver more planes than Boeing this year but orders for years to come have slowed and the delayed A380 superjumbo is now not due for first delivery until the last quarter of 2007.

Costs stemming from that delay, a stronger dollar and a resurgent Boeing have increased pressure on Airbus to revisit the way it manufactures planes.

Christian Streiff, who stepped down as Airbus chief executive this month after just three months at the helm, said he hoped to see Airbus ahead of Boeing again in 15 year's time.

- REUTERS