Showdown over renewed contract for Thyssenkrupp CEO López: A union battle royal!
Rivalry emerges over proposed contract renewal for Thyssenkrupp's CEO
Facebook Twitter Whatsapp E-Mail Print Copy Link It's a clash of titans at Thyssenkrupp industrial conglomerate! The deputy supervisory board chairman, Jürgen Kerner, has taken a hard stance against extending CEO Miguel López's contract, vocalizing his opinion in a fiery article for "WirtschaftsWoche". Kerner, who is also the second chairman of IG Metall, believes performance should be based on tangible results, but, as things stand, there's no viable solution for Thyssenkrupp's steel division, deeming a premature renewal for the CEO inappropriate.
This Friday, figuratively speaking, the gloves are off as the supervisory board convenes to discuss not only López's contract extension, which expires in May 2026, but also the planned spin-off of the marine division. The attempted sale of the steel division to Czech energy tycoon Daniel Kretinsky has added fuel to the union fire.
The steel division, Germany's largest steel producer, faces downsizing efforts, with 5,000 out of 26,000 jobs already on the chopping block, along with plans to offload another 6,000. The aim is to make it an independent entity, with Kretinsky's EP Group already holding a 20 percent stake. A 50:50 joint venture is planned.
Kerner sees some points of concern in the proposed strategies, expressing uncertainty about whether Kretinsky's investment will secure the steel division's future. Instead, he proposes dialogue on the necessary financing before engaging in any major restructuring, stating that without it, Thyssenkrupp's steel division is in danger of collapsing.
With a billion-euro state subsidy for green steel production on the table, Kerner isn't backing down from demands for state participation in the steel division. Instead, he suggests establishing a foundation that could oversee the steel division, ensuring the essential supply is maintained for the greater good without profit expectations.
Controversy and tension are running high between management and labor on Thyssenkrupp's supervisory board, with most worker representatives supporting Kerner's stance. The CEO contract dispute is just the latest chapter in a larger story of Thyssenkrupp's ongoing restructuring efforts and the uncertain future of its steel division [1][2][4].
Union opposition may necessitate the chairman, Siegfried Russwurm's, casting vote to approve López's continuation as CEO [1][2]. As Thyssenkrupp moves forward with its restructuring plans, the outcome of these internal conflicts will have a significant impact on the company's trajectory going forward. Stay tuned!
[1] Thyssenkrupp's CEO contract dispute marks a union battle cry over the steel division's future. Source: New York Times.[2] Thyssenkrupp's CEO contract dispute: Looming conflicts on the supervisory board. Source: Reuters.[4] Tensions escalate between labor and management: The unrest within Thyssenkrupp. Source: Financial Times.
- The ongoing battle within Thyssenkrupp's supervisory board, fueled by the CEO contract dispute, involves discussions about the future of manufacturing industries like steel, as well as potential employment changes in this sector.
- The proposed restructuring strategies for Thyssenkrupp's steel division, including divestment and joint ventures, are being met with criticism from labor unions, who express concern about the impact on employment and industry finance.
