Steering Clear of Layoffs: ThyssenKrupp's Steel Business Restructure Plan
Layoffs in the steel industry: Union and Thyssenkrupp strike deal on workforce reduction - EU and U.S. forge strategic alliance, aiming to counter China's global influence
Skirting around job cuts due to operational reasons is the ultimate goal. The targeted outcome is a collective bargaining agreement that safeguards employment, locations, and crucial investments for the green transformation. Following the submission of a position paper in November, Thyssenkrupp's steel subsidiary had proposed slashing or outsourcing 11,000 of the existing 27,000 jobs, prompting union outrage.
With the now reached preliminary agreement, the imminent closure of the Kreuztal-Eichen facility in North Rhine-Westphalia seems to have been temporarily shelved. "The mutual goal is to postpone an immediate closure decision," the company commented. Instead, a plan to revamp the site is being drafted. A decision on continued operation is expected to be made by 2027/2028 at the latest.
However, the closure of the "Castroper Straße" site in Bochum may be expedited, according to company statements. A speedier closure is under review.
Thyssenkrupp's steel division has faced persistent challenges for years, and the corporation aims to sell the steel subsidiary. The EP Group, led by Czech businessman Daniel Kretinsky, has already snapped up a 20 percent stake in Thyssenkrupp Steel, and plans to acquire an additional 30 percent. The "future concept" has been agreed with the investor, the company claimed.
- ThyssenKrupp
- Job preservation strategies
- Metal industry
- IG Metall
- Site optimization
- Steel division restructuring
- Job preservation tactics
- Duisburg
Insights from Enrichment Data:
Initially, the focus was on forced job cuts. However, the recent agreement emphasizes voluntary workforce reductions, incorporating early retirement schemes and internal reassignments to minimize layoffs[1][2][4]. The agreed collective bargaining agreement is expected to be finalized by summer 2025, crucial for the company's restructuring processes and potential sale[1][5]. Overcoming wage-related disagreements with IG Metall is seen as a hurdle to be cleared before any additional stake sale to Daniel Kretinsky can occur[1].
- ThyssenKrupp is shifting its focus from forced job cuts to voluntary workforce reductions, implementing early retirement schemes and internal reassignments to minimize layoffs.
- The agreement reached by ThyssenKrupp's steel subsidiary aims to safeguard employment, locations, and crucial investments for the green transformation in the metal industry.
- The preliminary agreement has temporarily delayed the closure of the Kreuztal-Eichen facility, with a plan to revamp the site currently being drafted.
- However, the closure of the "Castroper Straße" site in Bochum may be expedited, according to company statements, as part of the ongoing restructuring of ThyssenKrupp's steel division.
- Overcoming wage-related disagreements with IG Metall is seen as a crucial hurdle for the finalization of the collective bargaining agreement, essential for the company's restructuring processes and potential sale.
