Progress-Werk Oberkirch AG: Executive Board and Works Council fight side by side to develop a future-proof package to increase the competitiveness of the Oberkirch production site

DGAP-News: Progress-Werk Oberkirch AG / Key word(s): Miscellaneous
24.03.2021 / 11:18
The issuer is solely responsible for the content of this announcement.

Press Release

PWO AG's Executive Board and Works Council fight side by side to develop a future-proof package to increase the competitiveness of the Oberkirch production site

Oberkirch, March 24, 2021 - The Executive Board and the Works Council of PWO AG are working together to develop, with the consent of IG Metall, a future-proof package to secure the Oberkirch production site and preserve as many jobs in the longer term as possible.

To this end, intensive talks with the Works Council and trusted representatives of IG Metall have been held since the beginning of 2021, and a clear outline of the key points for an agreement has been jointly developed. Specifically, this includes the introduction of a 39.5-hour workweek without an increase in compensation and the waiver of selected additional payments under the collective agreement. All those involved in the talks are convinced that this would significantly increase the competitiveness of the Oberkirch site. There is also a great deal of support from the workforce as the applause of the workforce showed on the occasion of the Works Council's speech at today's IG Metall event at our Oberkirch site.

Carlo Lazzarini, CEO of PWO, in his comments emphasizes: "The Executive Board is fighting for the long-term preservation of the production site. However, this can only succeed if we become competitive again locally. While our revenues at the international subsidiaries are increasing strongly worldwide, the order intake at the Oberkirch location is increasingly suffering, despite the high number of customer inquiries also being received currently at Oberkirch."

Although our efforts to increase productivity are bearing fruit, they are far from sufficient. We can only regain our competitiveness if we focus more strongly on less wage-intensive products and achieve a sustainable flexible adjustment in staff costs.

Exactly how many jobs can be saved depends on framework conditions such as weekly working hours and the structure of collectively agreed special payments, and thus on the support and flexibility of IG Metall. Only with everyone working together can the Executive Board, Works Council and workforce achieve their common goal.

Dr. Cornelia Ballwießer, CFO of PWO: "There will be some painful changes. In return, the workforce is offered a viable future at the Company. The Executive Board will fight to preserve every single job. This can only be done with a viable package for the future."

The Executive Board supports regaining competitiveness through investments in automation and Industry 4.0, as well as by making targeted investments in the further qualification of the workforce, in order to continue to consistently pursue the current path to become a high-tech location.

Progress-Werk Oberkirch AG
The Executive Board

Company Profile PWO
PWO is a partner to the global mobility industry for the development and production of advanced metal components and subsystems using lightweight construction. The Group has developed a unique knowledge in the forming and joining of metals over the course of its more than 100-year history since it was founded in 1919. With our expertise in lightweight construction, we contribute to environmentally friendly driving and greater distances.

All of the Group's more than 1,000 products contribute to electrification, safety and comfort. More than 90 percent of revenue is independent of the vehicle's type of drivetrain. Approximately 3,000 employees on three continents at five production sites and three assembly plants ensure the highest level of delivery reliability and quality.

24.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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