Job warning over Sarkozy and Airbus

29-06-2007

Job warning over Sarkozy and Airbus
The government has warned the Nicolas Sarkozy's election as French president could spell trouble for the UK's share of jobs cuts at Airbus.

As part of the negotiated agreement, 1,509 jobs will be lost at the pan-European aircraft manufacturer in Britain.

But MPs are worried that Mr Sarkozy will seek to renegotiate the terms of Airbus' 10,000 job losses under its €5 billion (£3.4 billion) Power8 restructuring plan.

The majority of redundancies are to be felt in France and Germany, as well as Spain.

A report from the trade and industry select committee says that if Mr Sarkozy, a vocal supporter of Airbus, raises the possibility of new arrangements, the government should "show the same commendable dedication and determination it showed in arriving at the current agreement".

"The outcome of the Power8 restructuring and the allocation of work packages for the A350 XWB has been a good one for the UK," committee chairman Peter Luff said.

"However, there is more to do to ensure this represents more than a medium-term 'stay of execution' for Airbus UK. In the short term we must ensure there is no reopening of negotiations on Power8."

The committee also stresses the importance of continuing investment in research and technology if Airbus is to remain competitive with Boeing in the long-term.


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