RichardPrice
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EADS Reaches Jobs Agreement With UK

Tue Jul 18, 2006 8:22 pm

EADS and the British Government have reached a deal securing 16,000 UK jobs linked to Airbus, as well as placing a British National on the EADS board.

The deal is also likely to give EADS greater access to the UK defence market, in direct competition with BAE.

http://news.bbc.co.uk/1/hi/business/5189896.stm
 
VirginFlyer
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RE: Eads Reaches Jobs Agreement With UK

Tue Jul 18, 2006 8:30 pm

Interesting... Is this going to extend into Britain taking a stake in EADS, or will it just be having a member on the board and guaranteeing continued British operations?

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PanAm_DC10
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RE: Eads Reaches Jobs Agreement With UK

Tue Jul 18, 2006 9:41 pm

Quoting VirginFlyer (Reply 1):
Is this going to extend into Britain taking a stake in EADS

No, the UK Government would not take a holding in EADS under the arrangement that this report refers to. However the DTI is very concerned about protecting the UK jobs at current levels. EADS is prepared to invest further in the UK should BAE Systems sell their stake in Airbus via the establishment of a new research centre.

Quoting VirginFlyer (Reply 1):
or will it just be having a member on the board and guaranteeing continued British operations?

The proposal by EADS of a UK Board member is linked to the point that EADS has ``agreed to give serious consideration to a secondary listing of its shares on the London Stock Exchange,'' according to the UK DTI. It appears that if BAE Systems do sell that EADS will effectively list the equivalent value of 20% of Airbus on the LSE via their own equity.

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NAV20
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RE: Eads Reaches Jobs Agreement With UK

Tue Jul 18, 2006 9:59 pm

On the face of it one has to be glad for our friends at Airbus UK. However, I for one was impressed by the sincerity of the new Airbus guy yesterday in his determination to increase efficiency. But I don't readily see how that can square with a commercial company effectively guaranteeing to maintain a given level of employment, or guaranteeing that certain percentages of production work will be done in certain countries, or whatever form the deal takes.

In the end both employment levels and where the work gets done depend on the profitability of the company; and that in turn depends on things being done in the most efficient way.

In that connection the share market appears to have taken a dim view of yesterday's announcements so far - EADS shares are headed south again, already down to Euro20.00.
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AirbusA6
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RE: Eads Reaches Jobs Agreement With UK

Wed Jul 19, 2006 1:47 am

The A350XWB has brand new wings. I presume the preliminary work was done by the Airbus UK design team, as they Europe's wing expertise. Moving this to France or Germany would be tricky, as key staff could just as easily defect to Boeing as move to mainland Europe.

Production, now that's a different matter...
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