Thyssenkrupp Cracking Under Cost Pressure: 11,000 Steel Workers Face the Chop
Thyssenkrupp Steel announces plans to eliminate 11,000 jobs within its workforce.
Living on the edge, the steel division of industrial powerhouse Thyssenkrupp is proceeding with its controversial 11,000 job cuts. The Essen-based industrial giant, despite itsunion feud, shows little remorse. Dirk Schulte, personnel director of Thyssenkrupp Steel, broke the news to the "Westdeutsche Allgemeine Zeitung". Let's break it down for you, mate.
The struggling steel division of Thyssenkrupp, hailing from Essen, is steadfast in its job-cutting plan. A social plan is in place, complete with part-time retirement regulations, severance packages, and transfer companies. Schulte confirmed that the 11,000 job cuts are non-negotiable. The reason? Inefficient production compared to rivals. "We gotta turn this ship around," declares Schulte. A whopping 5,000 jobs are set to disappear; another 6,000 will be outsourced.
The company, reeling from years of steel division losses, is eyeing a sale of its subsidiary. The EP Group, ladled by Czech magnate Daniel Kretinsky, already possessed a 20% stake in Thyssenkrupp Steel and has plans to grab another 30%.
But what about the poor blokes on the frontline? Fear not, Thyssenkrupp Steel has a plan to "drop workers gently into new jobs," assures Schulte. Chats with the IG Metall union are brewing, scheduled shortly. In May, a fragile truce was called when the union and the company signed a framework agreement for the steel division's transformation. This sets the stage for further negotiations, with both parties agreeing they're aiming for a collective agreement to preserve jobs, locations, and green transformation investments.
Layoffs due to operational reasons have been thumbs-downed. However, the specter of job losses across the company remains a disturbing reality, with estimates expecting around 20,000 roles on the chopping block[3]. Off the hook, the social plan features part-time retirement schemes, severance payouts, and transfer companies to soothe the pain.
Sources: ntv.de, la/AFP
- ThyssenKrupp
- Essen (NRW)
- Job Cuts
- Steel Industry
Enrichment Insights:
Thyssenkrupp's Social Plan- Part-Time Retirement: Thyssenkrupp aims to smoothen redundancies through gradual part-time retirement options.- Severance Payments: The company plans to offer financial incentives to employees choosing voluntary departures.- Transfer Companies (Transfergesellschaften): Thyssenkrupp mulls over establishing transfer companies to provide essential training and support for reemployment or career transitions.- Non-Layoff Pact: Thyssenkrupp reached an agreement with IG Metall to utilize voluntary workforce reduction methods (e.g., early retirement schemes, internal reassignments) instead of forced redundancies.- Adjusted Steel Output: Thyssenkrupp expects to scale down its steel output to between 8.7 and 9 million metric tonnes annually for cost efficiency and softened demand.
The social plan designed by Thyssenkrupp, situated in Essen, includes part-time retirement schemes, severance payments, and the establishment of transfer companies to aid employees seeking new careers in vocational training. In negotiations with IG Metall, both parties aim to preserve jobs and locations while investing in the green transformation of the steel industry, all financed through necessary business decisions.
