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France tells Airbus to minimize mandatory job cuts

The Airbus logo was unveiled at the entrance to the Airbus facility in Bouguenais, near Nantes, France, June 30, 2020. REUTERS / Stephane Mahe

PARIS (Reuters) – French government pushes Airbus (AIR.PAon Wednesday to make as few mandatory redundancies as possible after the European aircraft manufacturer announced it was collecting 15,000 posts in Europe to survive the coronavirus crisis.

New Transport Minister Jean-Baptiste Djebbari said the government estimated that 2,000 of the 5,000 planned cuts in France could be saved through a reduced long-term work scheme and due to government investment in next-generation green planes.

“The state is pushing Airbus to ensure that there are as few forced surpluses as possible,” Djebbari told BFM TV. “Airbus is facing a very difficult period ahead. The state stands by Airbus, and by Air France. ”

Djebbari confirmed Air France (AIRF.PA) plans to lay off nearly 7,600 jobs in a restructuring that will be announced this week, including 1,000 in its regional Hop unit! The figure appeared at a company meeting on Tuesday, he said.

The French government has agreed to provide 7 billion euros ($ 7.9 billion) in state aid to Air France to ease the economic shock of coronavirus pandemic. Djebbar also urged Air France to minimize mandatory surpluses.

“It’s not 7 billion euros to pay the surplus programs. It’s 7 billion for survival, to pay salaries at the end of the month,” the minister said.

The French state owns 11% of Airbus and 14.3% of Air France KLM.

(1 $ = 0.8909 euro)

Reporting by Sudip Kar-Gupta and Richard Lough; Edited by Louise Heavens and Edmund Bler

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