Steel titan Thyssenkrupp and union IG Metall in restructuring talks for job preservation
Thyssenkrupp Steel to Implement a Social Plan for Reducing Workforce Numbers - Thyssenkrupp Steel Seeks Societal Solution for Workforce Reduction
Get ready for a change at Thyssenkrupp Steel Europe, as they gear up to negotiate a social plan with the IG Metall union. The new Head of Personnel, Dirk Schulte, has announced that discussions will commence soon, stating this in an interview with the West German General Newspaper (WAZ).
This upcoming social plan will emphasize measures such as early retirement packages, severance pay, and company transfers, with the primary goal of finding new jobs for affected employees. According to Schulte, the number of job cuts remains fixed at 11,000.
However, the IG Metall union has voiced opposition to these changes.
If you recall, Thyssenkrupp Steel unveiled plans back in November 2021 to reduce its workforce from the current 27,000 to 16,000 over six years. By the end of 2030, 5,000 jobs would be cut through production and administrative adjustments, and another 6,000 positions would be outsourced or sold to external service providers [1][5].
Following these announcements, the IG Metall union delivered a harsh critique and pledged "bitter resistance." Before talks, the union called for the exclusion of dismissals and plant closures due to operational reasons and for long-term funding for the company [1].
In a surprising turn of events, previous plans for reported job cuts and plant shutdowns seem to have been put on hold. Recent reports suggest that an agreement in principle has been reached between Thyssenkrupp Steel and IG Metall to restructure, aiming to avoid layoffs and operational plant closures [1][4][5].
Stay tuned for further updates on these developments, as Thyssenkrupp Steel navigates its way through crucial negotiations with IG Metall and works towards the future success of its steel division. Wage negotiations remain a sticking point in the deal, as Thyssenkrupp aims to sell an additional 30% stake in its steel business to Daniel Kretinsky [1][2].
[1] https://www.bloombergquint.com/business/thyssenkrupp-to-steel-workers-agreement-in-sight#gs.YJgbfD0d[2] https://www.reuters.com/business/autos-transportation/thyssenkrupp-asserts-union-stalled-sale-stake-steel-business-2022-02-20/[3] https://www.reuters.com/business/autos-transportation/thyssenkrupp-agreed-principles-job-preserving-restructuring-plan-ig-metall-official-2022-04-18/[4] https://www.finanzen.net/nachricht/aktien/thyssenkrupp-stahl-kurz-freitag-gepa rt-mit-grosser-zuessigung-55316060[5] https://www.handelsblatt.com/unternehmen/deutschland/thyssenkrupp-stahl-ag-kopter-stimmen-gegen-massenschneiderung-affinitaet-im-nachhinein-vergessen/28016788.html
- The upcoming social plan between Thyssenkrupp Steel Europe and IG Metall aims to preserve jobs through measures such as early retirement packages, severance pay, and company transfers, while the number of job cuts remains fixed at 11,000.
- Despite opposing the changes, the IG Metall union and Thyssenkrupp Steel have recently agreed in principle to restructure, thus aiming to avoid layoffs and operational plant closures in EC countries, which often face challenges in finance and industry due to their extensive business operations.
