FRA/rap-th> After intensive negotiations, Fraport AG's works council today agreed to the "Pact for the Future 2010"   (Zukunftsvertrag).  This pact is a  key element of the company's "We're Making Fraport Fit" project  launched in January.  Thus, the company has moved considerably closer to the goals of the project:  securing employment and international competitiveness by reducing staff and non-staff costs.  In return, Fraport's  executive board has already promised that there will not be any operationally determined job layoffs through 2010 and no cuts in the annual income of employees.     

Talks with the unions will immediately start, including on the extension of the standard weekly hours of work and on the adjustment of entry-level wages in operational areas of the company.

Fraport AG's executive board chairman Dr. Wilhelm Bender said:  ""The Pact for the Future" is an important contribution to ensuring the future prospects of our staff and the competitiveness of our company.  This   continues  our tradition of making important decisions in consensus.  Furthermore, the pact contains many elements underscoring that Fraport continues to be a socially responsible corporation."

A decisive course was set with greater "working time flexibility."  Both parties are in agreement that the existing competitive situation makes it necessary to adjust work schedules better to operational requirements than in the past.  Agreement will be reached on the total number of work days per year, the beginning and end of work hours, the length of shifts, and floating shifts.

Measures for consolidating fringe benefits are another important step achieved in the pact.  The existing efficiency bonus plan for staff will be split into two components in the future:  one based on individual performance, the other on corporate success.  The success-based component will be contingent upon  the company's business success (EBITDA).  Simultaneously, through the year 2010, the budget for the efficiency bonus plan will be reduced to the same degree as pay rates are expected to rise – thus compensating for the reductions.

Furthermore, in the future new hirings will be at a lower entry-level pay; in ground handling, the number  of external staff may reach up 23 percent of the regular personnel.

The employee stock program will be continued.  Currently, more than 60 percent of the employees hold  Fraport stock.  Also, Fraport employees will share in the company's success by receiving a special profit  bonus of probably €250.00 in 2005.

Outsourcing will be done only if indispensably required for the survival of a specific business area.  Insourcing possibilities are being examined.

In conclusion, Bender said, "We not only want to maintain the number of jobs within the Fraport group but continue to create new jobs.  The "Pact for the Future" has brought us essentially closer to this goal."

For More Information, Please Contact:
Fraport AG, Robert A. Payne, B.A.A., Press Office (Dept. UKM-PS),
Corporate Communications (UKM), 60547 Frankfurt am Main, Germany.
Tel.: +49 69.690.78547; Fax: +49.69.690.60548
E-mail:  r.payne@fraport.de