Airbus deal with supplier Spirit raises fears for 2,500 jobs in Belfast


Unions in Northern Ireland have called on the government to intervene to safeguard more than 2,500 jobs and the region鈥檚 biggest aerospace manufacturing base after Airbus confirmed plans to take over some of the facilities of supplier Spirit AeroSystems.

The European plane maker on Monday announced plans to take over Spirit鈥檚 components production for some of its key programmes as part of a wider carve-up of the struggling supplier with US rival Boeing.

The transfer to Airbus includes activities in the UK, including at Belfast in Northern Ireland and in Scotland, as well as in France, Morocco, and Kansas and North Carolina in the US. The deal paves the way for Boeing to complete the $4.7bn takeover of Spirit announced last year.

Uncertainty over the future of Spirit鈥檚 historic Short Brothers factories in Belfast remains. The operations are integral to the region鈥檚 thriving aerospace industry that employs about 3,500 people. One of the facilities makes the carbon-fibre wings for Airbus鈥檚 A220 jets.

Unite and the GMB union warned that the agreement raised 鈥渟erious concerns鈥 over the future of the activities and announced a protest at Westminster on Wednesday.

Susan Fitzgerald, Ireland secretary at Unite, said the UK government needed to step in 鈥渋n some capacity鈥 and threatened industrial action if jobs were put in danger.

鈥淲e are looking in real time at the break-up of one of Northern Ireland鈥檚 linchpin companies for the economy,鈥 she told the Financial Times.

Under the agreement, Airbus will take over the A220 wing production, which employs about 1,000 people. In the event that a third-party buyer is not found for the non-Airbus work, the plane maker will also take over production of the A220 mid-fuselage, which employs about 500 people.

Another 2,000 people work on non-Airbus business, including maintenance and repair work. They also manufacture fuselage sections and other components for business jets built by Canada鈥檚 Bombardier. If a third-party buyer is not found, Boeing will take over these activities.

Fitzgerald said Airbus had told unions that if it took on the A220 fuselage work, it could only be for 24 months.

聽 鈥淭here鈥檚 wording in the term sheet that the fuselage wouldn鈥檛 stay there indefinitely. What they have verbally said to us is that you鈥檙e probably talking two years,鈥 she said.

Airbus said the existence of 鈥渢ransitional provisions鈥 in the term sheet did not 鈥減rejudge any long-term outcome鈥.

The 鈥渙ptimal solution鈥 it said, was for a 鈥渃redible third-party industrial buyer鈥 to be found for the non-Airbus activities. This would allow the mid-fuselage work to 鈥渃ontinue operating as part of a strong, sustainable aerospace ecosystem鈥.

The unions want Spirit鈥檚 Northern Ireland sites to be transferred to a single aircraft manufacturer 鈥 ideally Airbus.

Alan Perry, senior organiser at GMB in Belfast, which represents about 300 workers at the plant, said there was now a 12-week 鈥渃ooling-off period鈥.鈥.鈥.鈥塼o try and sort all this out鈥.

鈥淥bviously Airbus and Boeing can鈥檛 be on the same site,鈥 he said.

鈥淣obody is saying the factory is going to close but how is it going to remain if we have a jigsaw [of ownership]?鈥 Perry聽added.

Under the deal, Airbus will also take charge of a site in Prestwick, Scotland, which makes wing components for its A320 and A350 aircraft programmes.

The company will be compensated for taking on the lossmaking production work by a $439mn payment from Spirit, less than the original $559mn originally planned owing to changes in the deal. Airbus will also provide non-interest-bearing credit lines worth $200mn to Spirit.

Airbus said its 鈥渋mmediate priority鈥 was to 鈥渟tabilise operations [and] ensure continuity for our programmes鈥.

Sash Tusa, analyst at Agency Partners, said the deal could have implications for Airbus鈥檚 plans to increase output.

While it was 鈥渃learly possible that Airbus will consolidate all the A220 work on a single site in Belfast鈥.鈥.鈥.鈥塸roduction moves like that take months and are very disruptive鈥, he said in a note.