Airbus “looking at the details” of Chancellor Rishi Sunak’s new Job Support Scheme

Airbus has said it is “looking at the details” of a new Job Support Scheme announced the Chancellor Rishi Sunak on Thursday which will replace the current furlough scheme.

The UK Government outlined a package of new measures today aimed at helping workers affected by the ongoing coronavirus crisis.

The new Job Support Scheme will be introduced from 1 November and will protect viable jobs in businesses who are facing lower demand over the winter months due to coronavirus.

Airbus is shedding 15,000 jobs globally as it deals with the fallout from the pandemic.

The company is in talks with unions on reducing its Broughton workforce by 1,435 positions, a further 235 jobs at Filton Bristol will go.

A spokesman said Airbus is “looking at the details of the scheme to see how it will help our business in the UK.”

“We welcome support measures from the government which will help to minimise the damage from the severe market downturn our industry is currently facing.”

Under the scheme, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.

24/09/2020. Chancellor of the Exchequer Rishi Sunak holds a Covid-19 Press Conference in 10 Downing Street. Picture by Pippa Fowles / No 10 Downing Street.

Employers will continue to pay the wages of staff for the hours they work – but for the hours not worked, the government and the employer will each pay one third of their equivalent salary.

This means employees who can only go back to work on shorter time will still be paid two thirds of the hours for those hours they can’t work.

In order to support only viable jobs, employees must be working at least 33% of their usual hours. The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.

The Job Support Scheme will be open to businesses across the UK even if they have not previously used the furlough scheme.

The Welsh government has been calling for sector-specific support for the aviation industry in Wales to help protect thousands of jobs.

Economy Minister Ken Skates was disappointed with today’s announcement, he said:

“While the wage subsidy is a welcome development, we have been calling for sector specific support and today’s announcement does nothing to provide that.

Our aerospace sector, for example, which is absolutely crucial to both the Welsh and UK economy and livelihoods of thousands of people, is in need of targeted assistance and today many jobs are still at great risk when the Chancellor had a real opportunity to provide the security needed.

It’s also disappointing that this does not deliver for workers and businesses when it comes to training and improving skills. It’s clear that workers who need that help the most will lose out in the long term.”

Speaking to Deeside.com in July, Paul McKinlay, Airbus Senior Vice President UK said a shorter working week ‘could’ help save jobs at Broughton.

He said, “A shorter working week is something we’d be keen to explore.

“What we’re talking about is a reduction of 5, 10, 15 percent in the working week with some of that shortfall in wages partially funded by the UK Government.