10,000 Airbus job cuts!

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smacDC-10
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10,000 Airbus job cuts!

Post by smacDC-10 »

This is really sad indeed for a lot of people. Lets hope Airbus gets it together.

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Ruscoe
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Post by Ruscoe »

Despite the current problems at Airbus, they still have a huge backlog to be built.

Who is going to build them if 10,000 laid off?

Airbus are already more efficient at producing aircraft than Boeing if you work out the number of deliveries based on the number of employees.

So this can only mean outsourcing. Airbus employees who loose their job may be able to pick up a similar one with a different employer, unless the outsourcing goes to Russia, China, Qatar or the like.

Ruscoe

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DFW
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Post by DFW »

Yep, Airbus has a huge backlog.

I'm not sure about labor practices in Europe, but it's commonplace for companies in the States to reduce their workforce and hire people back as contractors. The company then looks lean to investors, even though not much has changed. Perhaps this is how Airbus plans to keep their production running while restructuring?
By the way, is there anyone on board who knows how to fly an airplane?

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cageyjames
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Post by cageyjames »

Well he did say no layoffs so I assume it just means replacing expensive experience labor with cheaper, more productive, younger labor. Happens everywhere.

The problem is that Airbus is still a political football.

Great airplanes though ;)

smokejumper
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Post by smokejumper »

If you outsouce and contract for your labor, overhead and benefits costs can be lower. This is what happened with Boeing's sale of the Wichita Division to Onex, a Canadian investment firm who renamed the unit Spirit AeroSystems. Boeing saved a lot of money and the employees got fewer benefits. Too bad for them, but they kept their jobs.

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bits44
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Post by bits44 »

I would think that the employees of Spirit would strongly disagree with you!

They have more work now and much more on the way, in fact they may end up manufacturing the majority of the Airbus A350!

plus they are on a share program so their success in the future will depend on work outside the Boeing realm of influence.

They also own facilities in Europe and are in the process of buying BAE's Aerosystems business.





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smokejumper
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Post by smokejumper »

bits44 wrote:I would think that the employees of Spirit would strongly disagree with you!

They have more work now and much more on the way, in fact they may end up manufacturing the majority of the Airbus A350!

plus they are on a share program so their success in the future will depend on work outside the Boeing realm of influence.

They also own facilities in Europe and are in the process of buying BAE's Aerosystems business.

http://www.kansas.com/mld/kansas/busine ... tstory.jsp
My son and two of his in-laws are Spirit engineers in Wichita. Two of the three individuals are now contractors and have minimal benefits (they now buy their own health insurance and can take vacation whenever they want, with no pay of course; work schedule permitting). They are glad to have jobs, but would like to go back to the Boeing way.

They are now on the cutting edge of Boeing's sharp sword to cut costs!

I will be in Wichita in 2 weeks and I'm sure this will be a topic of conversation. Jeff Turner, Spirit's CEO, is putting on a happy face since he is part of the top managment team.

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TexasGuy
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Post by TexasGuy »

Outsourcing is the enemy of employees of the free world in the EU and US :(:(:(
Theres nothing better than slow cooked fall off the bone BBQ, Texas style

smokejumper
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Post by smokejumper »

From this article in der Spiegel, the end does not appear to be in sight. If the disagreements persist, any proposed A350XWB schedule will be in jeopardy; if delays continue (the A350 is now 5 years and counting behind the B787), potential customers will have to order from Boeing, or miss out on new technology advances and efficiencies.

The article reinforces the concept that the Airbus model is designed to keep France in the industrial and technological lead; Germany is in the second tier even though they've made major investments.

The failures of the A380 are Airbus management's responsibility, not Germany's and any cutbacks need to be shared equally.

See:
http://www.spiegel.de/international/0,1 ... 56,00.html

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Zenfookpower
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Post by Zenfookpower »

Well crafted article..
In my humble opinion, the following quote says it all !!!

"People have been saying that governments should stop meddling in EADS affairs. Business interests should prevail, they say. The company should be more competitive, order should rule. But this isn't realistic. Herein the dilemma: political influence is hurting the company, but to remove such influence, the company's present structure would need to be scrapped...."

Who will take the first step..??

smokejumper
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Post by smokejumper »

The part I find most interesting in the article is:

""Center-right Frankfurter Allgemeine Zeitung thinks that "reorganizing Airbus is going to test the German-French partnership."

"The history of the European EADS project shows that the often preached about equality in the German-French partnership was seldom attained. To put it bluntly, industrial and technological leadership rested with the French, while the Germans spent heavily to buy themselves into the deal, basically to create jobs here in Germany.""

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