A source familiar with Airbus told Reuters that Airbus had warned employees that if the division does not follow the cost-cutting strategy formulated in April to the spin-off, its small parts manufacturing business jobs in Germany may lay off hundreds of people. 

A source familiar with the plan submitted to the union and union stated that if the group continues to manufacture parts rather than spin-off activities, it will be at risk for 1,000 of its 2,500 small parts manufacturing jobs in Germany

According to the reorganization four months ago, Airbus’s premium Aerotec division in Germany will be split. Some will be merged with other Airbus manufacturing plants.

The rest will become new businesses specializing in small, large-scale production of “detailed” parts. Be separated.  Premium Aerotec makes components for commercial and military aircraft, mainly in Augsburg and Varel near Bremen. 

The unit has been at a loss for many years, and Airbus believes that with a new owner, it can also work for competition or win customers in other industries, thereby making better use of its workforce. 

The aircraft manufacturer has previously stated that it estimates that Premium Aerotec is 25% to 30% more expensive than other suppliers. When asked about the number of jobs at risk due to the restructuring, Airbus declined to comment. 

The IG Metall union opposes the split, worrying about layoffs and poor working conditions after the disintegration of the department. Airbus aircraft fuselages are also assembled in this department. 

 The issue is taking on a political dimension. Finance Minister Olaf Scholz, the Social Democrats (SPD) chancellor candidate for September’s federal election, plans a “solidarity visit” on Monday to Premium Aerotec in Varel. 

Airbus also promised to study the future of the group’s internal parts production. A spokesperson said: “The analysis we shared with employee representatives at the end of July clearly shows that internal channels are more painful for employees to achieve a competitive cost structure.” 

 Therefore, he said, the company wanted to find a better owner who could preserve more jobs. Switzerland’s Montana Aerospace has already expressed interest.  “The window of opportunity to reposition is now before production rates return to pre-crisis levels,” the Airbus spokesperson said. 

 Source: Reuters