Progress-Werk Oberkirch AG: PWO intends to conclude company collective agreement

Progress-Werk Oberkirch AG / Key word(s): Strategic Company Decision
Progress-Werk Oberkirch AG: PWO intends to conclude company collective agreement

27-Sep-2019 / 09:45 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


- Agreement should strengthen competitiveness of Oberkirch location
- Targeted cost reduction is in the mid-single-digit million range

Oberkirch, September 27, 2019 - At its meeting today, the Management Board of Progress-Werk Oberkirch AG has decided to terminate the company's membership in the Metalworking and Electrical Industry Employer Association with effect from December 31, 2019. Instead, the Company intends to conclude a company collective agreement with the metalworker's union in Germany, IG Metall, in close cooperation with PWO employee representatives.

In light of the continuing weakness in the automotive industry, extensive measures must be taken to adapt to this environment, particularly at the German location with its high level of wages. The decision now taken is intended to strengthen the competitiveness of the Oberkirch location, enable it to continue to operate profitably in the future despite the current industry development.

The Management Board is confident that a company collective agreement will make it possible to tailor the cost structures more precisely to the needs of a medium-sized automotive supplier than is possible within the scope of the industry-wide collective agreement, which is always also tailored to the requirements of the major automotive manufacturers and suppliers. The aim of this step would be to realize savings in the mid-single-digit million range. The industry's development will also continue to require the ongoing implementation of substantial cost-cutting programs, also in the area of material costs. Despite taking these necessary measures, employment security will be maintained until the end of 2020.

Progress-Werk Oberkirch AG
The Management Board

End of ad hoc announcement

27-Sep-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at

show this

Managing your cookie settings

To provide you with the best website experience, we use cookies. These are small text files that are stored on your computer. These include cookies for the operation and optimization of the site as well as for services such as the use of text or video chat and for advertising based on your online usage behavior. For example, it can be recognized if you repeatedly visit our pages from the same device. We would like to give you the choice which cookies you allow:

Show details

Required cookies
These cookies are necessary for you to navigate through the pages and use essential functions.

They enable basic functions, such as the article request and access to the product finder.

Analytical cookies
These cookies help us to better understand user behavior.
Analytical cookies enable the collection of usage and recognition data by first or third-party providers, in so-called pseudonymous usage profiles. For example, we use analysis cookies to determine the number of individual visitors to a website or service, as well as to analyze user behavior on the basis of anonymous and pseudonymous information about how visitors interact with the website. It is not possible to draw any direct conclusions about a person.

Further information