FRANCOTYP-POSTALIA ARBITRATION COMMITTEE DECIDES ON VOLUME OF REDUNDANCY SCHEME

In the negotiations in the arbitration proceedings between the management and employee representatives of Francotyp-Postalia GmbH and Francotyp-Postalia Vertrieb und Service GmbH, the parties came to a decision on the volume of a redundancy scheme. Around 110 employees working in production at the Birkenwerder site will be affected by the impending redundancies. The total volume of provisions will come to around EUR 7.5 million. Of this amount, EUR 7.0 million is earmarked for the redundancy scheme and EUR 0.5 million will be set aside for other operating expenses.

In the fourth quarter of 2010 and the first quarter of 2011, provisions of EUR 3.6 million were already made (EUR 2.1 million for staff costs and EUR 1.5 million for onerous contracts). The difference of EUR 5.4 million will additionally set aside in the second quarter of 2011.

Once these measures have been implemented, by the end of the first quarter of 2012 at the latest, and the new production site in Wittenberge has been completed, this expense will be offset by savings of around EUR 3 million a year.