Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
European aircraft manufacturer Airbus, the subsidiary of EADS, announced the details of its cost cutting programme called ‘Power 8’. The company stated that the restructuring programme is considered as a response to the lasting Dollar weakness, the financial burden resulting from the delays in the delivering of the A380 plane and to safeguard future investments.
The cost reduction scheme envisages savings of around 2 billion Euro from 2010 onwards. Therefore, a reduction of the company's total workforce of 57,000 employees by 10,000 employees is deemed necessary. The reduction of 5,000 jobs (covered by temporary agency workers or by employees of local subcontractors) shall begin immediately. The other 5,000 jobs covered by permanent workforce shall be reduced within four years, mainly through voluntary arrangements between employer and employees and compensation payments. 3,700 jobs shall be cut at Airbus Deutschland, 4,300 at Airbus France, 1,600 at Airbus UK and 400 at Airbus Espana. Direct dismissals are not planned at this stage, though Airbus announced that other measures might be considered if the cost reduction scheme is not realised within 12 to 18 months. With regard to the job cuts, further details will have to be decided on the national level in future. The plants in Laupheim and Varel in Germany shall be sold. Investors for the location in Nordenham in Germany are looked for. Further details of the job reduction scheme for Germany will be forthcoming.
In Germany, where Airbus employs a permanent workforce of 22,000 at seven locations and several thousands of temporary workers, Airbus Germany had already stopped hiring temporary workers in autumn 2006. These measures are in line with a 2003 collective agreement, Siduflex, aimed at securing employment for those in permanent employment until 2012. The agreement provides for the employment of temporary workers to amount to one third of the total German workforce and for more flexible working time arrangements. These measures include the reduction of outsourcing and working hours (without compensation).
On 22 October 2007 Handelsblatt cited an IG Metall spokespersons saying that the trade union does not expect job cuts in Germany in the near future as a buyer for the six European plants has not been found yet and Airbus Germany has started to employ an increasing number of temporary workers again. A social plan settled 19 October arranges for the voluntary job leaves of administratives employees.
Eurofound (2006), Airbus, Internal restructuring in Germany, factsheet number 64283, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/64283.
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