Agreement with IG Metall
Airbus guarantees safety for German plants
2/1/2022, 6:32 p.m
The months-long conflict between Airbus and IG Metall finally finds a conciliatory end after tough negotiations. Both sides agree on job security at the German locations until the end of 2030. The path for the planned restructuring is now clear for the industry leader.
IG Metall has wrested far-reaching concessions from the aircraft manufacturer Airbus for the planned conversion of aircraft production. During the night in Hamburg, both sides agreed on a package that secures the German locations until the end of 2030 and protects employees from redundancies for just as long. In return, Airbus can look for a solution for the parts production, which has been in deficit for years. In addition, the industry leader – as before in France – can also reposition itself industrially in Germany in order to prepare for the foreseeable sharp increase in production and the climate-neutral conversion of flying.
This was preceded by a ten-month conflict with seven rounds of negotiations and several series of warning strikes. If the talks had failed, IG Metall would have initiated a strike ballot. “After the conflict, it’s now about shaping the future,” said the North German district manager and chief negotiator for the union, Daniel Friedrich, after the 18-hour negotiation marathon in a hotel at Hamburg Airport.
With a delay of six months, Airbus will now combine the assembly of aircraft fuselages and structures, which was previously carried out by various companies, in a new German subsidiary as of July 1st. In France, a comparable structure with the new subsidiary Airbus Atlantic has been in place since the beginning of the year. “The fact that we are now so far in Germany strengthens Germany as a location, strengthens Airbus and in particular the commercial aircraft activities in the Airbus Group,” said Airbus negotiator and German head of human resources Lars Immisch.
“ASA” is intended to create jobs
The still unnamed subsidiary, known internally as “ASA”, will have its headquarters in Hamburg and employ more than 10,000 people – with a likely upward trend, as Airbus has announced significant new hires. Parts of the largest German Airbus site in Hamburg, the Airbus plant in Stade and the Airbus subsidiary Premium Aerotec (PAG) with sites in Bremen and Nordenham are affected.
“The aircraft structure will play an important role in the next generation of aircraft,” said Airbus Germany boss André Walter. “We are therefore convinced that with this industrial realignment we are creating the opportunity to ramp up production and prepare very specifically for the construction of emission-free aircraft by 2035.”
After Airbus had reduced production of the blockbuster from the A320 family from around 60 to 40 machines per month during the Corona crisis, it should gradually increase to 65 machines by summer 2023. Up to 75 machines per month are targeted for the middle of the decade. On the way to climate-neutral flying, Airbus also wants to develop a hydrogen-powered passenger aircraft to market maturity by 2035.
“Magical win-win situation”
In view of these challenges, IG Metall district manager Friedrich spoke of a “magical win-win situation”. Airbus will get clarity for the intended realignment. “On the other hand, we have agreed security and perspectives for the employees with this result.”
In the last round, the original plan was abandoned to include assembly production in three of the four PAG plants in Augsburg in the “ASA”. These are now to be sold together with the loss-making parts production in the fourth PAG plant in Augsburg, the location in Varel in Lower Saxony and the Romanian location in Brasov to the medium-sized automotive supplier Muhr und Bender KG (Mubea) in Attendorn in North Rhine-Westphalia.
According to Airbus, Mubea has made a “convincing offer”. “The offer includes a comprehensive concept for long-term job security and enables the creation of a competitive German company.” According to Walter, a good 3,000 people are employed in the affected division in Germany. However, Airbus’ preferred sale to an investor can only go ahead if the works council and IG Metall also give the go-ahead. Clarity on this should be gained by the end of March.
Mubea, with a turnover of around 2.3 billion euros and around 14,000 employees at 48 locations worldwide, manufactures lightweight components. The company has been one of the Airbus suppliers for many years and, according to a press release, intends to “sustainably expand and strengthen its mainstay in the aviation industry” by acquiring Airbus’ individual parts production. The company was convinced that, together with the union and employee representatives, it would be able to “achieve an optimal solution for everyone involved”.