DGAP-News

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 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 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.