Thyssenkrupp's Steel Division Reboot: Competitiveness, Job Cuts, and Green Transformation
Thyssenkrupp Steels Division Proposes Social Plan While Maintaining Job Reduction Strategy - Thyssenkrupp considers implementing a social plan and stands firm on employee layoffs in the steel sector.
Get ready for some major changes at ThyssenKrupp's Steel Division. With a whopping 11,000 jobs hanging in the balance, Dirk Schulte, the man behind the scenes, has laid out the plan. Though he admitted that nearly 40% of the division’s workforce could be impacted, he assured that talks with powerful union, IG Metall, are on the horizon, kicking off soon.
Schulte’s focus is straightforward: getting folks into new jobs. He's confident that the steel monster isn't lean enough, costing them a pretty penny compared to other steel producers in the industry. “We gotta change that,” he said. A chunky 5,000 positions will be scrapped, while another 6,000 will be outsourced, setting off a domino effect in the industry.
Just a couple months ago, in early May, the union and the company shuffled their feet after a heated spat and reached a basic restructuring agreement for the steel division. This was the first step in a continued dance towards a collective bargaining agreement. The ultimate goal: a deal that secures jobs, locations, and the necessary investments for the green transformation, according to the union. And, to the relief of many workers, dismissals due to operational reasons are aimed to be sidestepped in this melee.
For years, Thyssenkrupp's steel division has struggled to stay afloat, and the company is eyeing a sale of the steel subsidiary. The EP Group of Czech businessman Daniel Kretinsky has already snatched a 20% stake, and another 30% is in the pipeline.
- ThyssenKrupp
- Steel Division
- Job Cuts
- Job Reductions
- IG Metall
- Green Transformation
- Divestment
- Restructuring
- Kretinsky
Here are the nitty-gritty details, straight from the source:
- Job Reductions: Thyssenkrupp initially considered scything 11,000 jobs. Though they're playing coy about plant closures in Kreuztal-Eichen, they're planning a swift location optimization shake-up instead. Other facilities, like the spring-making plant in Hagen, are slated to shut down by 2027, impacting around 300 workers. However, the union and management have agreed to prioritize keeping operational layoffs to a minimum.
- Corporate Restructuring: The steel giant plans to bifurcate into separate entities, with the steel division being the likely target for sale or spin-off. They're also considering new options for their materials trading business, potentially worth a cool €2 billion. Additionally, their headquarters will be scaled down, shedding around 1,000 administrative jobs.
- Decarbonization and Green Technologies: They're plotting to create a new “Decarbon Technologies” segment, which they envision as a future growth engine in the realm of green technology.
- Labor Union Involvement: IG Metall has taken the lead in negotiations, concentrating on limiting job losses and ensuring a fair shake for affected employees. Together, they are forging ahead towards a fresh collective agreement, guaranteeing stability and backing for workers during and post-restructuring.
In conclusion, ThyssenKrupp’s Steel Division restructuring involves major job cuts, location optimization, corporate restructuring, and a strong emphasis on green technologies—all packaged with agreements meant to minimize operational layoffs and support affected employees. So buckle up, folks: it's going to be a wild ride!
In the restructuring of Thyssenkrupp's Steel Division, there will be significant job reductions, with roughly 11,000 positions potentially eliminated.However, negotiations with the labor union, IG Metall, aim to keep operational layoffs to a minimum.
As part of the corporate restructuring, Thyssenkrupp is considering selling or spinning off the steel division, and they have plans to bifurcate into separate entities. Furthermore, they are exploring new options for their materials trading business and intending to create a new "Decarbon Technologies" segment, focusing on green technologies as a potential growth engine.
