Yahoo Finance Airbus threat to quit UK puts 100,000 jobs at risk
More than 100,000 jobs could be at a risk if European planemaker Airbus pulls out of the UK because of a “no deal” Brexit.
The company on Thursday outlined the “urgent risks” its business faces if the UK leaves the EU next March without an agreement with the remaining members of the trading bloc and immediately left the single market and customs union.
“Far from Project Fear, this is a dawning reality for Airbus. Put simply, a ‘no deal’ scenario directly threatens Airbus’ future in the UK,” said Tom Williams, chief operating officer of Airbus Commercial Aircraft.
In its risk assessment, Airbus said it employed 14,000 in 25 sites across the UK and support more than 110,000 jobs in the supply chain.
A detailed analysis by Oxford Economics based on 2015 data provides an insight into the impact on each of the nations and regions in the UK and concluded that at the time company supported 117,400 jobs across the UK.
It calculated that operations linked to Airbus raised £1.7 bn in tax for the UK exchequer and the company’s global operations supported a £7.8bn contribution to the economy when the impact of suppliers such as BAE Systems were included.
That Oxford Economics report found Airbus employs 6,400 in Wales in Broughton, in the north, which houses the assembly lines for wings for all Airbus aircraft, and Newport, in the south, which is a defence and space centre.
Oxford Economics said this made Airbus the second largest private sector employer, and when wages paid to employees in Wales and profits made in the nation are included, it made a £563m contribution to Welsh GDP – the equivalent to over 5% of the economic output of Cardiff, the capital.
The impact is greater when the supply chain is included: 11,700 jobs in Wales are supported by Airbus.
The Welsh Conservative leader Andrew R T Davies, though, said there was a “lot of hyperbole flying around” and that it was in everyone’s interest – including German carmakers and French wine producers – to ensure trade remained “free and frictionless”.
In south-west England, Airbus has a key facility in Filton, Gloucestershire. Some 3,000 are employed and three significant suppliers based in the region; GKN, Cobham and Meggitt. Oxford Economics calculates that taking into account the supply chain, Airbus supports 9,200 jobs in the region. That jobs number rises to 17,500 when further factors are taken into account and a £1bn contribution to the south-west economy.
In the east, two operations in Stevenage, which are part-owned by Airbus, employ 2,300 but, Oxford Economics analysis shows, 10,400 roles are supported through the supply-chain and knock-on spending.
According to Oxford Economics, Airbus employed over 2,700 in the south-east of England in 2015 in locations such as Portsmouth, Oxford, and Guildford. The economists calculate that in total 15,200 roles are supported through the region.
In other parts of the UK, Airbus supports an estimated 39,000 jobs, the Oxford Economics report said. It points out that Rolls-Royce, based in the east Midlands, is its third biggest global supplier by value.
Airbus argued that it is impacted by Brexit because it relies on frictionless trade through the EU’s customs union and single market rules. It might not be able to install parts in the UK as a current agreements on production, maintenance, repair and overhaul adhere to the European Aviation Safety Agency.
Without a transition deal, World Trade Organisation rules take over. “Airbus’ production is likely to be severely distrusted due to the interruption to the flow of parts and/or discontinued airworthiness,” the company said.
“A no deal Brexit must be avoided as it would force Airbus to reconsider its footprint in the country, its investments in the UK and at large its dependency on the UK,” said the company, which is based in the Netherlands.
