In order to remain internationally competitive in future, to be profitable, and to continue to execute orders in Switzerland, the optimisation of cost structures to EU and euro levels is necessary in the area of precision manufacture of large components (Mechanical Engineering) by RUAG Technology in Altdorf. A staff reduction of around 40 employees can no longer be excluded. Yesterday the open consultation process with the employee representatives was started.
Because of the cost structure and the currency situation in the euro zone, RUAG Technology has for months not been competitive in the area of precision manufacture of large components (Mechanical Engineering) in Altdorf, and is no longer able to retain urgently needed orders or to win new orders. The situation is worsened by the fact that major customers of many years’ standing are step-by-step reducing their volumes, and are seriously considering transferring orders to the euro zone unless RUAG improves its cost structures.
“Our customers rate the work in our Mechanical Engineering section very highly. Above all the quality and delivery reliability. But because they themselves are under severe cost pressures, they expect us to adapt our manufacturing conditions to the level of the euro. Otherwise, they are forced to engage new suppliers in the euro zone. We are taking these indications very seriously. Unfortunately, under these conditions staff reductions can no longer be excluded, also in order to continue to retain the majority of the roughly 110 Mechanical Engineering positions in Switzerland”, commented Dr. Viktor Haefeli, CEO of RUAG Technology on the situation
In finding a solution, we are placing the emphasis on the adaptation of the cost structure through a more intensive use of synergies, process simplifications, the flattening down of the management structure, and the expansion of marketing activities. Measures already taken, such as a cutback in time accounts and reduction of night and weekend shifts, as well as not filling empty positions, are not sufficient to achieve a stable workload in the medium term. A staff reduction of around 40 employees can therefore no longer be excluded. Yesterday the open consultation process with the employee representatives was started. RUAG Technology is open to constructive, targeted measures which must be submitted by 16 November 2011.
For the affected employees, the RUAG redundancy plan would come into effect. In addition, RUAG is implementing a jobcentre so as to actively support the affected employees in applying for and finding jobs.