27 March 2020:Triumph Group has provided an update on the current impact of COVID-19 on the business and the steps taken by them to mitigate the crises.
Following are the steps taken by Triumph group to tackle COVID-19
- The Company is expanding its actions to limit the spread of COVID-19 consistent with U.S. and international government safeguards.
- Although the situation remains fluid, all factories remain operational. Triumph is complying with all mandates for closure of non-essential operations. Triumph will adjust its plans as government decisions and Company policies evolve.
- Given Boeing's plans to close their Washington state factories for 14 days, Triumph will evaluate the need to furlough employees at a subset of Triumph plants where capacity is largely dedicated to Boeing Commercial Aircraft programs.
- Approximately 250 full-time salaried employee and 250 contractor positions will be eliminated. Severance will be paid to impacted employees consistent with existing policies. These reductions are expected to be completed by May 1, 2020.
- The Company will implement furloughs for certain salaried employees of two weeks over fiscal 2021 to minimize reductions in force. Additional furloughs may be required based on site closures or reductions in customer demand for Triumph's products and services. Base salaries and wages for hourly and most salaried employees will be maintained. Medical benefits will continue during furloughs.
- Triumph will suspend merit pay increases for all team members until the crisis has passed while forgoing management increases for one year.
- Senior executives, including the CEO and direct reports, will forgo 10 per cent of their base salaries starting April 1, 2020 during the crisis.
- Triumph's Board of Directors has elected to reduce their cash compensation during the crisis by 25 per cent. The Board will continue to adjust executive and Director compensation as the situation warrants.
Responding to the above Daniel J. Crowley, President and CEO of Triumph Group said, "The safety and economic well-being of our employees and the communities we serve remain top priorities for the Company. Given the dramatic and sudden impact of the virus on the world and on the aviation industry we support, we must take immediate and painful actions to protect our people and preserve our Company so that we can survive and be well positioned for the recovery. I want to thank the 10,000 men and women of Triumph Group for their efforts to limit the spread of the virus and to keep our plants running so that our customers' critical missions are sustained for the benefit of all."