Planee maker Airbus will today announce plans to axe 10,000 jobs in four European countries.

 

The company is expected to force contractors to share the pain of the cuts, which could provoke labor unrest, industry sources said.

 

The plans, which have caused a split between France and Germany over the distribution of job losses, are part of a restructuring deal discussed last Friday by German and French leaders, who agreed to share job losses and new technology.

 

By making contractors share the pain of job cuts, Airbus could limit the impact on its own workforce to some 5,000 jobs or nine percent of its 55,000 staff. The other half will fall outside Airbus, the sources said.

 

Most of the 10,000 jobs at stake are in France and Germany, the two nations where most Airbus production is based and whose representatives divide up power in parent company EADS.

 

Jobs in Britain and Spain are also under threat.

 

Airbus is expected to heed calls from political figures, including French Prime Minister Dominique de Villepin, to avoid forced sackings with French elections looming in April and May.

 

"There will be 10,000 job cuts, including half from Airbus and half from the outside contractors," an industry source said, asking not to be identified.

 

Airbus declined comment.

 

Unions have threatened strikes over the cuts, which are expected to involve the sale of up to a quarter of its 16 factories to Airbus suppliers and partnerships for some others.

 

"We totally oppose the closure of any site and we won't accept any firings," said European Metalworkers' Federation head Peter Scherrer after a gathering of Airbus unions on Tuesday.

 

One factory at Meaulte, in northern France, halted production 24 hours ahead of labor talks yesterday. It is one of three plants slated for partnerships, including Filton in Britain and Nordenham in Germany, the sources said.

 

The restructuring follows a dramatic decline in Airbus's fortunes in the past year when rival Boeing restored its lead in global aircraft sales for the first time since 2000.

 

A two-year delivery delay on Airbus's A380 superjumbo damaged European pride and cost EADS five billion euros (US$6.6 billion).

 

Related Reading: Airbus Facing Strikes over Planned Job Cuts

 

(Shanghai Daily by Tim Hepher March 1, 2007)