Recaro Aircraft Seating reaches agreement with German works council, IG-Metall and Südwestmetall

©RECARO headquarters

Negotiations at Recaro Aircraft Seating (Recaro) for securing the company and its workforce have concluded. The result secures the employment of the employees at the Schwaebisch Hall location until June 30, 2023.

A total of 95% of IG-Metall (IGM) members voted “yes” for the concessions made by employees and thus for an exclusion of dismissals for operational reasons. This solution is widely supported by the workforce and demonstrates the strong connection and solidarity of the RECARO team. As a result, 1,100 employees have a crisis-proof workplace during this time of the economic crisis.

Recaro reported that sales in 2020 are expected to be around €300 million (US$357 million), 60% below the previous year’s level. The company has already started preparing for a significant weakening of the market in 2019. International customs disputes have clouded the 2020 outlook, and airline insolvencies and challenges at aircraft manufacturers have led to an already tense market situation last year. The “Touch & Go” efficiency program was therefore launched in the fall of 2019, which has led to significant savings and is being energetically pursued.

Recaro has been using short-time work in Germany since April to compensate for the decline in production and orders. At the same time, future projects, new product developments, Lean Enterprise and the site expansion “space2grow” with its own flam lab and crash facility are being driven forward in order to emerge from the crisis stronger.

The primary goal is to secure and stabilize the company financially. From the very beginning, the management’s focus was to navigate the crisis together with the workforce. The company is heavily committed to the Schwaebisch Hall location as its corporate headquarters

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