Subscribe free to our newsletters via your
. Space Industry and Business News .




MILPLEX
EADS vows to limit redundancies in jobs cull
by Staff Writers
Paris (AFP) Dec 10, 2013


Germany must be spared brunt of EADS cuts: Berlin
Berlin (AFP) Dec 10, 2013 - The German economy ministry urged European aerospace giant EADS on Tuesday to implement job cuts cautiously and to remain even-handed in spreading them across the group.

"The ministry notes with regret EADS's decision to cut 5,800 jobs by the end of 2016," it said in an emailed statement.

"We call on the aerospace group to implement the planned cuts as cautiously and in a way that is as socially acceptable as possible," the ministry wrote.

And it added: "We assume that the cuts will not be one-sided to the detriment of the German sites. The aim must be to make it as transparent to the workforce as possible what awaits them."

EADS, which makes Airbus planes but also has many other aerospace activities, announced late on Monday that 5,800 jobs in its defence and space division would go in the next three years.

About 2,470 affected posts are in the space division while the remaining 2,830 are in defence.

The cuts are part of a restructuring programme undertaken by the company to cope with falling orders, and will affect its workforce in Germany, France, Spain and Britain.

They come about year after a planned merger between EADS and British defence giant BAE Systems fell through on opposition from Germany, which feared that a restructuring following a tie-up would cost jobs, notably in the German defence sector.

The defence activities of EADS are under pressure in large part because of cuts in European defence budgets, including in Germany.

"We will monitor very closely future developments and will remain in talks with EADS," the ministry said.

The group "has profitted and still does so from direct and indirect subsidies from the federal government," it said.

European aerospace giant EADS vowed Tuesday to limit the number of redundancies in a programme of sweeping job cuts it insists are essential for its future survival.

"We have to act now," said EADS chief executive Tom Enders, defending a decision unveiled a day earlier to slash 5,800 jobs across the group over the next three years.

The cuts will be shared equally across EADS's aerospace and defence activities.

Military orders were down and international competition on emerging markets was becoming increasingly fierce, Enders argued.

"Inaction would be irresponsible and would result in a far more severe situation for our employees and for the performance of the company just a couple of years down the road," he told a telephone news conference.

EADS human resources director Thierry Barril said that 1,300 temporary contracts would not be renewed in 2014.

In addition, 500 positions would be scrapped in the group's central functions.

On top of this, around 2,000 jobs would be axed in Germany, 1,260 in France, 557 in Spain, 450 in Britain and 180 in the rest of the world.

After transfers within the group, early retirement programmes and voluntary redundancies, EADS management is pencilling in 1,000-1,450 forced layoffs.

EADS' strategy chief Marwan Lahoud said some 700 forced redundancies could be made in Germany, and 300 in France.

But Enders said it was too early to say exactly what the final number will be.

Management will start talks with unions to explore ways of limiting the layoffs, such as modifying working hours, Barril said.

Lahoud said EADS would discuss the changes with unions in order to reduce forced redundancies.

"If we don't have agreements by mid-2014 we'll be forced to go ahead with redundancies," he said.

French Labour Minister Michel Sapin insisted job cuts at profit-making EADS were "not acceptable" while Industrial Renewal Minister Arnaud Montebourg called for transfers, voluntary departure or retirement packages only.

In Berlin, the German economy ministry urged caution in implementing the job cuts and said EADS must remain even-handed in spreading them across the group.

"We call on the aerospace group to implement the planned cuts as cautiously and in a way that is as socially acceptable as possible," the ministry wrote.

And it added: "We assume that the cuts will not be one-sided to the detriment of the German sites. The aim must be to make it as transparent to the workforce as possible what awaits them."

"Very relaxed about political reactions"

CEO Enders said all of the governments -- in Madrid, Paris, London and Berlin -- had been forewarned about the cuts and that he felt "very relaxed about the political reactions."

Unions -- IG Metall in Germany and Force Ouvriere in France -- slammed the plans which they said were dictated solely by financial considerations.

"We heard the same criticism" -- of greed, of chasing profits and jeopardising the company's future -- seven years ago when plane-maker Airbus was restructured, Enders countered.

Back then, a less-than-planned 7,900 jobs were axed and the programme was a success, he insisted.

Under the new shake-up, the aerospace and defence divisions Astrium and Cassidian will be merged with the military transport activities of Airbus to form a single unit Airbus Defense and Space.

The head of the new division, Bernhard Gerwert, said that 2,470 posts would be axed in aerospace and 2,830 in defence.

"This business is not competitive at all," Gerwert said, noting that US group SpaceX offered placing satellites into orbit for 30 percent less than Europe's Ariane.

Management has not yet drawn up a list of sites that will be closed.

Enders pointed out that all defence groups are currently undergoing restructuring.

And if EADS had merged with British defence firm BAE Systems a year ago, "we would have had less reduction of positions than on a stand alone position," he said.

It was primarily the objections of Germany which forced the EADS-BAE merger to be abandoned, because Berlin feared the tie-up would cost jobs.

pmr/rl/arp

EADS - EUROPEAN AERONAUTIC DEFENCE AND SPACE COMPANY

BAE SYSTEMS

.


Related Links
The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








MILPLEX
EADS to cut 5,800 jobs in Europe in restructuring
Berlin (AFP) Dec 10, 2013
European aerospace giant EADS, the maker of Airbus aircraft, announced plans Monday to cut 5,800 jobs in its defence and space division over three years. The job cuts, part of a major restructuring in the face of falling orders, will affect the group's workforce in Germany, France, Spain and Britain, the company said in a statement. The news came after a meeting of its European works cou ... read more


MILPLEX
Google opens first data centres in Asia

Berkeley Lab Researchers Create a Nonlinear Light-generating Zero-Index MetaMaterial

First Boeing-built Inmarsat-5 Global Xpress Satellite Sends Initial On-Orbit Signals

New setback for Canadian gold mine plan

MILPLEX
US Navy Accepts MUOS-2 Satellite, Ground Stations After On-Orbit Testing

Boeing Tests Validate Performance of FAB-T Satellite Communications Program

Intelsat General To Provide Satellite Services To US Marines

Manpack Radios in Arctic Connect with MUOS Satellites Orbiting Equator

MILPLEX
Kazakhstan to end Proton missions in 2025

Russian Proton-M rocket launches Inmarsat-5F1 satellite

Basic build-up is being completed for Arianespace's Soyuz to launch Gaia

Third time a charm: SpaceX launches commercial satellite

MILPLEX
'Smart' wig navigates by GPS, monitors brainwaves

CIA, Pentagon trying to hinder construction of GLONASS stations in US

GPS 3 Prototype Communicates With GPS Constellation

Russia to enforce GLONASS Over GPS

MILPLEX
Forecast: Growth ahead in military helicopter market

Northrop Grumman Team Demonstrates Virtual Air Refueling Across Distributed Simulator Locations for USAF

Purdue science balloon, thought lost, makes dramatic return to campus

German helicopter deal examined by federal auditors: report

MILPLEX
A step closer to composite-based electronics

50 Meters of Optical Fiber Shrunk to the Size of Microchips

Chips meet Tubes: World's First Terahertz Vacuum Amplifier

NIST demonstrates how losing information can benefit quantum computing

MILPLEX
Juno Gives Starship-Like View Of Earth Flyby

China-Brazil satellite fails to enter orbit

Mysteries of Earth's radiation belts uncovered by NASA twin spacecraft

Mapping the world's largest coral reef

MILPLEX
US top court examines rules on cross-border air pollution

Chinese newspaper blasts state TV for tribute to smog

Air pollution in Europe kills even at guideline levels

Hong Kong announces new air pollution index




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement