With the announcement that Airbus, Thales, and Leonardo have signed a memorandum of understanding to combine their space businesses into a single company, trade unions representing the affected workers have given mixed reactions to the news.
The project, which, while not officially named, has been referred to by media sources as Project Bromo, would combine the Space Systems and Space Digital businesses of Airbus Defence and Space, the Telespazio and Thales Alenia Space joint ventures of Thales and Leonardo, and Thales’ Thales SESO optics business. The combined entity would employ approximately 25,000 people if current workforces are maintained and would have an estimated annual turnover of €6.5 billion in 2024.
The sharpest criticism came from FTM-CGT, the metalworkers’ federation of the Confédération générale du travail (General Confederation of Labour), one of France’s largest trade union confederations.
“The reason [given] for this merger would be to fight against the so-called competition from Starlink or to resist other emerging competitors. This is nothing but a false pretext. By the admission of our leaders, Airbus Defence & Space and Thales Alenia Space win almost all the contracts they want and have a record order book that they are struggling to honour.”
“The real reason for the Bromo project is to create a monopoly that will allow it to impose its prices and weaken the power of the agencies (CNES, ESA), increase margins and profits for shareholders, and operate to the detriment of the interests of citizens, public governance of the sector, and employment.”
In July, following the initial reports about the merger, CFDT Airbus Defence & Space, the company-level branch of the Confédération Française Démocratique du Travail (CFDT), one of France’s most influential trade union confederations, published a leaflet outlining its potential impact. In it, the union also questioned competition from SpaceX and Starlink, being used as justification, stating that it “does not hold up under scrutiny.” The leaflet added, however, that “bidding wars” between Airbus Defence and Space and Thales Alenia Space had led to “excessive risk-taking to win contracts.” It concluded by citing a McKinsey study finding that 70% of mergers fail, and that even those deemed successful are rarely beneficial for employees.
“CFDT warns of the significant risks inherent in the project, the main one being a massive medium-term impact on employment, potentially accompanied by full or partial site closures.”
A joint statement from Italy’s three main metalworker unions, FIM-CISL, FIOM-CGIL, and UILM-UIL, struck a more positive tone. However, the unions noted that, unlike in France, Italy does not have significant overlap in production structures between the companies involved.
“We express a positive initial assessment of the agreement reached between Leonardo, Airbus, and Thales for the construction of Bromo.”
“This result, pending a positive ruling from the EU Antitrust Authority, represents good news for the European space industry and beyond.”
A statement from FO Métaux, another major French trade union, was similarly positive about the merger’s potential but cautioned that it must not result in job losses.
“This merger between Thales, Airbus, and Leonardo paves the way for a new industrial balance, provided it remains guided by two imperatives: European sovereignty and the preservation of French expertise.”
“FO representatives from the affected sites emphasize that the merger cannot mean job losses or industrial impoverishment.”
As the proposed merger moves towards a review by EU antitrust authorities, the reactions from labour representatives highlight the complex road ahead. The final shape of this new European space giant will depend on its ability to reconcile these conflicting visions.