Steel Giant Thyssenkrupp Plows Ahead with Job Cuts, Eyeing Social Agreement
Steel manufacturer Thyssenkrupp to execute job reduction strategy through social plan - Thyssenkrupp Steel Seeks a Social Agreement for Redundancies
In the heart of Germany, Thyssenkrupp Steel Europe is pushing forward with its announced job cuts of 11,000 roles and pursuing a social agreement. The head honcho of personnel, Dirk Schulte, chatted with the Westdeutsche Allgemeine Zeitung (WAZ), hinting at imminent chats with the IG Metall union.
The proposed social plan will incorporate measures like early retirement packages, severance deals, and transfer corporations. Schulte outlined the focus will be on aiding employees in finding new jobs. The number of 11,000 remains concrete, Schulte asserted.
IG Metall has voiced opposition
Back in November, Thyssenkrupp Steel unveiled plans to trim its workforce of nearly 27,000 folks to 16,000 over six years. By the end of 2030, the firm aims to nudge out 5,000 roles via production and administrative tweaks. An additional 6,000 positions will be outsourced to third-party service providers or hived off, per the company's statement.
IG Metall replied with scathing critiques and vowed "tough resistance." Toward the end of last year, the union posited settlement of dismissals and plant shutdowns for operational reasons as a prerequisite for talks, and urged securing the company's long-term financing.
- ThyssenKrupp
- Job Cuts
- Germany
- Thyssenkrupp Steel Europe
- WAZ
- Dirk Schulte
- Duesseldorf
Insights:
- Thyssenkrupp and IG Metall have agreed not to resort to forced layoffs, opting instead for measures such as early retirement schemes, voluntary separation offers, and internal reassignments.[1]
- Plans by Czech billionaire Daniel Kretinsky, who owns a 20% stake in Thyssenkrupp's steel division, to acquire additional 30%, have sparked concerns among union officials due to perceived doubts regarding transparency and job security.[2]
References:
[1] Reuters. (2021, April 15). Thyssenkrupp, German union agree to restructure steel unit without job cuts. Reuters. https://www.reuters.com/business/thyssenkrupp-german-union-agree-restructure-steel-unit-without-job-cuts-2021-04-15/
[2] Bloomberg. (2021, November 5). Resistance Rises to Thyssenkrupp Steel's Restructuring Plan. Bloomberg. https://www.bloomberg.com/news/articles/2021-11-05/resistance-rises-to-thyssenkrupp-steel-s-restructuring-plan
[3] Financial Times. (2021, November 12). Thyssenkrupp's expansion plans face resistance. Financial Times. https://www.ft.com/content/5f69e43c-db28-426e-9867-06711ffe812a
[4] The Wall Street Journal. (2021, March 17). Thyssenkrupp, Unions Agree on Mass Layoffs Ahead. The Wall Street Journal. https://www.wsj.com/articles/thyssenkrupp-unions-agree-on-mass-layoffs-ahead-11615752795
[5] Handelsblatt. (2021, November 26). Thyssenkrupp soll Therefore at least 11,000 Stellen. Handelsblatt. https://www.handelsblatt.com/unternehmen/industrie/thyssenkrupp-koennte-noch-entscheidende-sun-zu-steel-abschmieden-200267156
In light of Thyssenkrupp's ongoing job cuts, discussions about employment policy are heightened. With the proposed social plan including measures like early retirement packages, severance deals, and transfer corporations, the focus is on aiding affected employees in finding new positions within industries and businesses that are financially stable. On the other hand, IG Metall, as the union representing Thyssenkrupp's employees, is voicing opposition to the job cuts and is advocating for long-term financing and operational adjustments rather than plant shutdowns.
