MARK AUSTIN THOMAS: After weeks of wrangling behind the scenes, European plane maker Airbus is about to announce its cost-cutting program. Ten thousand jobs are likely to go with French and German bearing the brunt. From London, Stephen Beard reports:
STEPHEN BEARD: Four thousand three hundred Airbus jobs are expected to go in Germany and 3,700 in France. Meanwhile, Britain will likely lose 1,500 and Spain, 500 positions.
The cuts are necessary, says the company. Profit margins are under pressure. The long delay in the delivery of the super-jumbo A380 is partly to blame. But so is the rise of the euro against the dollar. That’s made Airbus less competitive with Boeing.
Needless to say, the job cuts are not popular. Least of all in France and Germany. There’s going to be a strike, says Aviation analyst Howard Wheeldon.
HOWARD WHEELDON: In the short term, I would expect some industrial action. I’d be very, very surprised if we don’t see hostility from the trade unions. It’s not going to be acceptable to French and German workers across the board.
Airbus will try to soften the blow by getting rid of temporary workers first.
In London, this is Stephen Beard for Marketplace.