Airbus to meet European Works Council over possible impact on jobs due to A380 rate reductions

Airbus managers will meet with the European Works Council on Wednesday to discuss the impact on jobs from a planned fall in production rates of the A380 superjumbo and A400 military transporter.

The planemaker says it will explain the “already announced production adjustments to the A380 and A400M programs and discuss related workforce implications.”

A spokesperson for the company said;

“Airbus has long pursued the practice of first discussing labor law issues with the company’s social partners prior to a public announcement. The company will continue to honor this principle in the future.”

European Works Councils are bodies representing the European employees of a company, through them, workers are informed and consulted by management on the progress of the business and any significant decision at European level that could affect their employment or working conditions.

Airbus also says it “deeply regrets that, in the current case, this process has been disrupted by the disclosure of information to the media, resulting in exaggerated reports of alleged job cuts in the company’s four home countries” UK, Germany, France and Spain.

“Airbus handles responsibly all the social implications of business decisions. In the past, in similar situations, the company has consistently demonstrated its ability to find the best possible solutions for its employees.

Only after the meeting with the European Works Council on 7 March 2018 will Airbus announce further details of its plans and considerations. “ The company spokesperson said.

Stockpile

Airbus has said it may have to start stockpiling parts to operate smoothly once the UK leaves the EU according to a report by the BBC.

Katherine Bennett, senior vice-president for Airbus UK, told the broadcaster it would have to decide very soon about “pressing the button” on stockpiling.

“We spend £5bn a year on the UK supply chain… it is really important the parts don’t get held up in warehouses.”

Ms Bennett said Airbus was in discussions with government, she told the BBC’s Today programme that the firm operated a “just in time” supply chain, which meant that even a three-hour delay at Dover, for example, would be “a critical issue”.

“We need conditions right for us, we just don’t need these burdens… which may make Airbus think differently [about its base],” she warned.

The stockpiling of parts view is echoed in an article by the Irish Times today  – quoting an internal Airbus video posted to employees by Tom Williams, chief operating officer, he is reported saying;

“If we think there’s going to be a kind of a gumming up of the docks and the airports in March of next year and during a transition period then we’re going to have to start ordering additional components now, and that’s at a time when all of our suppliers are already pretty busy.