ChamPaper Group Results of the Consultation Procedure

The Cham Paper Group announced on 21 November 2011 that it is planning to restructure the Group and that this will lead to a gradual reduction in the number of FTEs at Cham from the present lev-el of 312 to approximately ca. 100 by the beginning of 2014. The first reduction step is the proposed shutdown of the first paper machine projected to take place in the first half of 2012. This will affect ap-proximately 130 employees. The second reduction step will be completed by the end of 2013 with the production shutdown of the second paper machine in the Cham mill.

The Board of Directors and the Executive Management Board immediately contacted the social partner organizations and cantonal government agencies for the purpose of carefully planning this process with the involvement of all stakeholders in a socially responsible manner. The objective is to sustainably se-cure 100 top-flight jobs in the long term and enable all 34 trainees to complete their training.

During the three-week consultation period, proposals for alternative solutions could be submitted to the employee representation body of the mill in Cham. The consultation period ended on 12 December. The employee representation body turned over the suggestions received to the Executive Management Board of the Cham Paper Group for examination by it. All proposals have been discussed with those submitting them and/or at yesterday’s meeting of the Board of Directors to determine their feasibility, profitability and sustainability. A number of the proposals are to be pursued further, in particular those for transforming the mill’s paper testing laboratory into an independent unit and employing the Group’s own resources for the proposed decommissioning and conversion work. The possibility for re-insourcing out-sourced work and processes will also be examined. The measures examined pertaining to the planned workforce reduction should not result in any significant changes.

The Executive Management Board will now initiate talks as planned with the social partner organizations to flesh out the details of the redundancy scheme. The goal is to finalize it in the first quarter of 2012.