Posted on 06/16/2006 5:51:41 PM PDT by saganite
French unions and opposition Socialists on Friday joined investor criticism of Airbus parent EADS in a row over executive share trading and delays to its flagship A380 which caused a steep share price drop.
Noel Forgeard, co-chief executive of Europe's aerospace giant, has denied having any advance warning before his decision to sell EADS shares for a EUR2.5 million (USD$3.2 million) profit in March, but failed to deflect investor and union anger.
Speaking on LCI television, Francois Chereque, head of France's CFDT union, questioned the timing of Forgeard's sale of stock options.
French and German authorities both announced probes into EADS stock trading on Friday. French regulator AMF said its own investigation had started some weeks ago.
Bernard Thibault, head of the Communist-backed CGT union, said the pay packets and stock options handed out to company chiefs had to be denounced, particularly at a time when such bosses were trying to reduce staff costs.
The union reaction highlights the political sensitivity surrounding the crisis at EADS at a time when the French government is anxious to defend jobs.
Prime Minister Dominique de Villepin intervened recently to force EADS to back down on part of its plans for severe job cuts at the loss-making Sogerma plant in southwestern France.
Aerospace is a major employer in France and an industrial success story that all politicians like to be associated with.
"The successive announcements about EADS... risk undermining the vital aeronautical sector, as much in terms of strategy as employment," the head of the Force Ouvriere union, Jean-Claude Mailly, said.
Senior Socialist politician Henri Emmanuelli urged a commission of inquiry into the EADS crisis by the National Assembly finance commission, which he used to head.
"What is going on at EADS is unacceptable," he said.
French President Jacques Chirac expressed support for EADS management earlier but urged it to solve its problems quickly.
bflr
It just keeps getting better and better.
(Senior Socialist politician Henri Emmanuelli urged a commission of inquiry into the EADS crisis by the National Assembly finance commission, which he used to head.)
At Boeing, something goes wrong, they fire the CEO quickly. Nice contrast.
Airburst -- going down in flames?
So sad.....Too bad.....
Semper Fi
Suggested translation: These guys are my golfing buddies and I get some decent kickbacks from them, but if this scandal gets any legs I'm not about to go down with their ship.
Oh, so it's profit deal?
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