Big Steel Mover: Thyssenkrupp Solidifies Job Cuts Strategy via Social Plan Negotiations
Thyssenkrupp Steel unveils personnel reduction strategy for layoffs - Thyssenkrupp Steel Seeks Social Plan for Workforce Reduction
Looks like Thyssenkrupp Steel Europe, Germany's heavyweight in the steel game, is getting ready to make some big changes, following their announcement in late November regarding a massive workforce reduction of 11,000 positions. According to Dirk Schulte, the company's new head of personnel, they're gearing up for talks with Germany's leading metalworkers' union, IG Metall, to iron out the details.
Thyssenkrupp's upcoming social plan will consider various measures to cushion the blow for workers, such as incentives for early retirement, generous severance packages, and transfer companies to help transition them into new roles. Schulte assured that the main focus will be on providing a smooth transition to new opportunities. He emphasized that the headcount reduction of 11,000 jobs remains firm.
IG Metall has already shown signs of resistance
When Thyssenkrupp initially unveiled their strategic plan to slash the workforce from its current 27,000 to 16,000 over a six-year period in late 2020, IG Metall fired back with some stern criticism, signaling their opposition. The union is demanding some prerequisites for negotiations, including a commitment to avoid operational dismissals and plant closures, as well as guaranteeing the company's long-term financing to secure jobs.
The resistance from IG Metall is not surprising given the proposed restructuring plan. Thyssenkrupp aims to achieve these job cuts through adjustments in production and administration by the end of 2030, as well as outsourcing 6,000 jobs to external service providers or selling off divisions. The restructuring plan reportedly includes the segmentation of specific business sectors and opening them up for third-party investment, similar to the Materials Services and Automotive Technology divisions[2][3].
As part of the restructuring, Thyssenkrupp has formed a 50-50 joint venture with EP Corporate Group for its Steel Europe division[3]. Meanwhile, IG Metall proposes a more collaborative approach, expressing the need for a future-focused vision that prioritizes job security and opportunities for employees and sites[1]. The employee representatives have also called for greater empathy from the management during this period of transition[1].
In the dynamic world of steel, these negotiations will likely pave the way for Thyssenkrupp's future, striking a balance between streamlining the workforce and providing support to its valuable employees. Stay tuned for updates on this unfolding saga!
- In the upcoming social plan negotiations, Thyssenkrupp and IG Metall, the leading metalworkers' union in Germany, will discuss employment policy matters, as the company aims to reduce its workforce by 11,000 positions and provide cushioning measures for affected employees.
- As part of the restructuring plan, Thyssenkrupp is considering industry strategies, such as outsourcing jobs to external service providers, selling off divisions, and segmenting specific business sectors for third-party investment, while IG Metall proposes a future-focused vision that prioritizes job security and opportunities for employees.
