FACC and the unions GPA-djp and GBH present social plan

• Corona crisis has a strong economic impact on the entire airline industry and thus also on FACC
• Agreement between trade union and FACC on social plan
• Works meeting on September 18, 2020
• Staff adjustment from 3,350 to 2,700 employees unavoidable

The aviation industry came under severe pressure worldwide due to the corona pandemic. It will take four to five years before the pre-Covid-19 level is reached again. FACC must adapt to the new market environment and respond to the reduced demand. At a works meeting today, the social plan that was worked out together with employee representatives was presented. The workforce will be adjusted from the current 3,350 to 2,700, 650 employees will have to leave the company due to the tense economic situation.

80 % of the world's aircraft fleets remained on the ground as a result of the corona crisis in recent months, and takeovers of new aircraft have been postponed. The entire aviation industry and with it the aircraft supply industry came under severe pressure worldwide. The consequence for FACC: production rates had to be reduced and thus adapted to market requirements. Since the end of March 2020, the FACC workforce has been on short-time work.

"The current situation is very challenging for the entire industry. In recent weeks, new data has made it possible to evaluate the long-term forecasts for the development of the aircraft industry. The recovery will proceed slowly and take four to five years. We expect the aviation industry to reach the level before Corona from 2024 onwards. Despite our many efforts in recent months to integrate outsourced products into our own production, to expand the product portfolio through vertical integration and to create approximately 150 new jobs at the site as a result of these measures, we as a company will not be able to avoid adapting to the new market environment and making significant changes," says Robert Machtlinger, CEO of FACC AG, "We are aware that this intervention will be painful for all colleagues affected, but also for the company. In numerous constructive negotiations with the works council and our social partners, we together have worked out a social plan. It is very important to us to make the adjustments in the workforce socially acceptable for those affected. With the social plan now available, we have succeeded in doing this in a fair way.”

"In the coming days, we will be holding one-on-one meetings with the employees affected. The social plan that has been drawn up aims to mitigate the negative effects and provide the best possible support," say the two union representatives Christian Burger (GBH) and Wolfgang Gerstmayer (GPA-djp).

Despite all the challenges and economic strain, the FACC management is convinced that the company is very well positioned for the future with its 2,700 highly qualified employees and a solid equity ratio of about 40%. New products are currently being developed and all research projects are being pursued without restriction. The company will continue to focus on offering its global customers sustainable and climate-friendly mobility solutions and, as a technology leader, further expanding its position on the global market.

Inquiries:

Andrea Schachinger	Kristina Erlinger
FACC Corporate Spokesperson	FACC Corporate Spokesperson
Tel.: +43/59/616-1194	Tel.: +43/59/616-1315
Cell: +43/664/80119-1194	Cell: +43/664/80119-1315
Email: a.schachinger@facc.com	Email: k.erlinger@facc.com