Production suspension and furlough for exempt, non-exempt ... - Honda

[Pages:3]Production suspension and furlough for exempt, non-exempt support associates extended by one week

The severe impact of the COVID-19 pandemic on the global and regional economy, along with stay-athome orders and other unfavorable market factors, continue to have a negative effect on the sales of our products. While there is encouraging news about state and federal efforts to loosen restrictions in the near future, sales forecasts for the coming weeks project a continued downward trend.

In response to this situation, we will maintain our approach to operate at minimum levels, conserve resources and reduce the long-term impact to the viability of Honda.

We understand how difficult this ongoing situation is for you and your family, and we are monitoring the conditions closely. We look forward to getting past this unprecedented time in our history and reuniting the Honda team. However, right now we must continue to share in the responsibility to ensure Honda's sustainability. That is why all U.S. managers and above, who have already received a wage reduction, will be subject to an additional temporary wage reduction of 4-7 percent for an 8-week period based on the current conditions. It is important that we all play a role in helping Honda get through this difficult period in our history.

In addition, we are announcing the following plan to continue key measures already in place across our North American operations for an additional week:

Production Update: Production at our auto, engine and transmission operations is now suspended through May 8. Production is scheduled to resume on Monday, May 11. All non-production days will continue to be designated as No Work Available for non-exempt associates in these production facilities. Honda of South Carolina, Mfg. (HSC) and Honda Aircraft Company (HACI) will resume production, as scheduled, on Monday, May 4.

For California associates: As Honda continues to maintain our business activities at minimum levels, the temporary furlough for the majority of our exempt, salaried and non-exempt support associates will be extended one week. Associates are now scheduled to return to work on Friday, May 8.

For U.S. associates outside of California: As Honda continues to maintain our business activities at minimum levels, the temporary furlough for the majority of our exempt, salaried and non-exempt support associates will be extended one week. Furloughed associates are now scheduled to return to work on Monday, May 11. HSC and HACI associates who are currently furloughed will return to work as scheduled on Monday, May 4.

All contingent associates and contractors should check with their respective agencies for updates to the furlough information.

A limited number of associates are still needed to maintain Honda's operations. By the end of the week, leaders will make every effort to contact both furloughed and non-furloughed associates regarding any change to their work status.

The situation with COVID-19 and its impact is changing daily. Should the situation change, we will continue to communicate any changes to you and populate HondaWeb, HondaMobile and The Spot with ongoing updates related to Honda and this crisis.

Income Replacement

Situation: The federal government has enacted the Coronavirus Aid, Relief, & Economic Security (CARES) Act. This far-reaching legislation is designed to protect both workers and companies during the pandemic. CARES contains two important items that address loss of income due to COVID-19-related impacts:

One-Time Direct Payment. Starting in the second half of April, the federal government will make direct payments of up to $1,200 per adult and $500 per child to qualified taxpayers. Therefore, a qualifying family of four could receive a payment of $3,400.

New Weekly Benefit. A new federal unemployment benefit of $600/week is available to workers who are (a) affected by a suspension or slowdown in business or (b) unable to work due to a direct impact of COVID-19 as an individual, which includes being quarantined, caring for a family member, closure of child's school/daycare, or inability to travel due to an emergency order.

Honda's response: The new CARES Act benefit of $600/week, added to state unemployment benefits, will provide associates with some income replacement during this temporary furlough. It is very important for all associates to understand that this temporary furlough does not impact your healthcare benefits, your active status as a Honda associate or your seniority / time of service.

To apply for unemployment, click here to find information for your state and the process to follow. Other information that was communicated last week, may be helpful during this period. That includes:

CARES Act additions to Honda's healthcare plan are explained here. CARES Act impacts to the Honda 401(k) plan are explained here.

While it is each associate's responsibility to follow the unemployment procedure in your state, Honda is prepared to support your Honda-specific questions. We have a team of Honda associates ready to help. For Honda-specific information, call the new HR Hotline at 877-809-0051 or email HRHotline@hna.. Click here for additional FAQs.

California Associates

In accordance with California law, currently furloughed California associates will receive an updated letter by mail notifying them of the extension. Associates newly furloughed for the third week will receive communication that, along with their final wages, there will be a full vacation payout (including any non-exempt sick time and/or flexible time off), which is legally required, unless they act immediately to inform the company otherwise. Newly furloughed associates will also receive a letter notification of the furlough. Therefore, we urge all California associates to read, review and pay close attention to the communications they receive.

Like all of you, we look forward to a day when our business will resume to normal levels. Until then please be safe and keep your families safe.

Shinji Aoyama Chief Officer of North America Region

Rick Schostek Executive Vice President & N.A. Risk Management Officer

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