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Unions geared up yesterday for a fight over potentially heavy job cuts at the troubled planemaker Airbus, despite efforts by European governments to calm its 55,000 staff on the eve of restructuring announcements.
The €2 billion ($3.77 billion) annual cost-saving plan is expected to trigger job losses and possible factory sales in France and Germany, with jobs in Spain and Britain also at risk.
Fears of unpopular cutbacks sparked political wrangling between France and Germany and ruptured the negotiations last week, but the board of parent EADS soothed differences between the two national factions this week.
Airbus was keeping staff waiting until today to find out how jobs would be affected by the Power8 restructuring plan, but union leaders met in Brussels yesterday to plot strategy.
Industry sources predicted the planemaker, run by astute former French railways boss Louis Gallois, would make a maximum effort to present the lowest possible number of job cuts by distinguishing between core Airbus jobs and contractors.
French Prime Minister Dominique de Villepin said last week that Airbus would cut 10,000 jobs, though many of those are thought to involve work at supplier firms.
Jobs are a major issue in Germany and France, which is eight weeks away from presidential elections.
German Economy Minister Michael Glos said he was confident the Airbus restructuring plan was fairly balanced between Germany and France, whose leaders agreed at a summit last week to share cutbacks now and modern technology later.
"I don't know the details but I am pleased that a joint solution was found that clearly gives both sides confidence that the burdens and the opportunities are fairly shared," Glos said during a European Union meeting in Brussels.
"All the signs suggest it's a good solution in which the Franco-German balance is preserved and as many jobs as possible are saved at the parent company." Power8, first announced last October, calls for annual cost savings of at least €2 billion from 2010, €5 billion in cash savings by then, and faster product development.
Airbus said it would brief unions on the plans today, outlining how it would achieve the savings.
Industry officials and analysts say questions will remain, especially if the Franco-German company opts to tread lightly with French elections just weeks away.
- REUTERS
