Collins Aerospace team,
As COVID-19 has swept across the world, its challenging effects have touched us all in many different and very personal ways. Every day we’re learning how to adjust to the profound changes around us. In addition to this ongoing health crisis, the effects of the pandemic on the global economy will be felt for years to come. And, as we all know, the commercial aerospace industry has been hit particularly hard.
Business environment
Over the past few months, I’ve shared updates with you about the significant headwinds our company is facing due to the decrease in demand from our commercial customers. In response, we’ve taken several difficult actions to contain costs. But as we learn more about the level of commercial business we are seeing today – and the levels we expect as the industry recovers over the next 1-2 years – additional actions are required.
Today Collins is initiating a Voluntary Separation Program (VSP) for eligible employees in the United States. This move will help us align the size of our workforce with the levels of demand expected from our commercial customers as we align with the outlook for our industry.
Our workforce considerations
To participate in the VSP, eligible U.S. employees must be at least 55 years old with a minimum of 10 years of continuous service as of July 31, 2020. To ensure a seamless commitment to our military, government and critical infrastructure customers, some employees in our designated military and government business segments may not be eligible for the U.S. VSP. There may be other specific roles that are not eligible based on job responsibilities or compliance with collective bargaining agreements.
Next week, eligible employees will receive further details and information on next steps directly from Global People Services. Human Resources will also host several Q&A sessions in the coming weeks for those eligible employees who are considering participating in the VSP.
Once the U.S. VSP is concluded, there may still be a need for Collins to take further workforce actions to align our business in response to evolving industry conditions. I know this is difficult news. These decisions are never made without intense scrutiny of what they mean for our business and how they will affect our employees.
My commitment to you is transparent communication about what’s happening in our industry, what it means for our business, and the necessary actions we’re taking for our company, our employees and our customers.
Our future
Despite the current economic conditions, the aerospace industry is remarkably resilient, and Collins has a history of adapting to overcome every challenge we face. By making these business decisions now, we are preparing our company to meet the needs of our customers and emerge well-positioned to lead the recovery of our industry.