Much has been said about the labor unrest among Airbus employees in Germany. Unfortunately whatever has been said is based on speculation driven by the unions (specifically IG Metall). No official words have come out and the fabled meeting on February 20 is only to report to the employees.
What we do know is that the A380 will have all its work done in Toulouse. That may mean people in Hamburg being offered positions in Toulouse because the skills are not in Toulouse. Similarly, with A320 work going to Hamburg, positions in Toulouse might be migrated to Hamburg. According to Bloomberg – "Among potential cost-cutting measures are moving all cabin work on the A380 to Toulouse from Hamburg; moving cabin interior furnishings work on the single-aisle A320 to Toulouse from Hamburg; and a decision to give Hamburg no work on building fuselages or installing equipment on the A350, the new plane scheduled to enter service in 2013."
Airbus at now being played by the union. If the Union can use its scare tactics, then it has power. "Stick with us and we will protect you". If things work out, the Union takes the credit. Airbus' moves are damned if they do and damned if they don't. The union will blackmail Airbus with delivery delays – something intensely painful to Airbus.
The idea of building a factory in China to make A320s is surely becoming more attractive by the day at Airbus. In Seattle, the IAM union is no doubt watching IG Metall closely. The trickle down effect could become a problem for Boeing as well. Restless labor at both Airbus and Boeing could be devastating to airlines that are now starting to make money. Watch developments closely because rational behavior is set to go out the window as greed takes over, fed by fear. Where will the calming voices come from? Certainly not from politicians who fear voters screaming in the streets. 2007 may be a tough year again at Airbus but potentially it could become tougher for Boeing and airlines around the world.



