Quick Takeaways
- PWO Group Oberkirch working hours agreement reflects a short-term response to reduced automotive call-offs while safeguarding jobs.
- The agreement balances cost flexibility with continued investment in digitalization and customer programs at the German site.
On January 26, PWO Group and the works council at the Oberkirch site reached a works agreement aimed at temporarily adjusting working hours and remuneration. The decision comes amid weaker call-off volumes from customers at several German locations, even though the overall order situation remains stable.
Temporary adjustment to working hours and pay at Oberkirch
The PWO Group Oberkirch working hours agreement allows for a flexible reduction in working time to align capacity with current demand conditions. Depending on workload requirements, working hours at the Oberkirch plant can be reduced by up to 7.63%, accompanied by a proportional adjustment to regular remuneration components.
This structured approach is intended to provide short-term relief while maintaining operational readiness. By linking working hours directly to workload, the company aims to navigate the present market slowdown without undermining long-term production capabilities.
Job security commitment under the works agreement
A central element of the PWO Group Oberkirch working hours agreement is the commitment to employment security. For the entire duration of the agreement, the company will refrain from issuing redundancies for operational reasons, with this protection in place until December 31, 2026.
This assurance offers stability for the workforce during a period of uncertainty in the German automotive supply chain, where fluctuating demand has increasingly affected production planning and capacity utilization.
Investments and customer projects to continue in 2026
Alongside the temporary measures, PWO Group confirmed that planned investments at the Oberkirch site will proceed as scheduled. Initiatives focused on digitalization, as well as multiple customer-specific projects, are set to continue through 2026 despite the current pressure on call-off volumes.
By maintaining these investments, the company signals its intention to strengthen the site’s competitiveness and technological capabilities, positioning Oberkirch for improved demand conditions once the market stabilizes.
Temporary adjustment to working hours and pay at Oberkirch
The PWO Group Oberkirch working hours agreement allows for a flexible reduction in working time to align capacity with current demand conditions. Depending on workload requirements, working hours at the Oberkirch plant can be reduced by up to 7.63%, accompanied by a proportional adjustment to regular remuneration components.
This structured approach is intended to provide short-term relief while maintaining operational readiness. By linking working hours directly to workload, the company aims to navigate the present market slowdown without undermining long-term production capabilities.
Job security commitment under the works agreement
A central element of the PWO Group Oberkirch working hours agreement is the commitment to employment security. For the entire duration of the agreement, the company will refrain from issuing redundancies for operational reasons, with this protection in place until December 31, 2026.
This assurance offers stability for the workforce during a period of uncertainty in the German automotive supply chain, where fluctuating demand has increasingly affected production planning and capacity utilization.
Investments and customer projects to continue in 2026
Alongside the temporary measures, PWO Group confirmed that planned investments at the Oberkirch site will proceed as scheduled. Initiatives focused on digitalization, as well as multiple customer-specific projects, are set to continue through 2026 despite the current pressure on call-off volumes.
By maintaining these investments, the company signals its intention to strengthen the site’s competitiveness and technological capabilities, positioning Oberkirch for improved demand conditions once the market stabilizes.
Company Press Release
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