Steel Giant Thyssenkrupp Announces Social Plan for Job-Saving Measures
Thyssenkrupp Steel Implementing Socio-economic Strategy for Employee Reductions - Thyssenkrupp Steel proposes a social plan for workforce reduction
Get ready, folks! Thyssenkrupp Steel Europe, Germany's top steelwork titan, is gearing up to start negotiations with the IG Metall union regarding a social plan designed to reduce the initially announced 11,000 job losses. Dirk Schulte, the new head of personnel at Thyssenkrupp, broke the news to the Westdeutsche Allgemeine Zeitung (WAZ), explaining that these negotiations would commence in the near future.
This social plan is shaping up to encompass several provisions intended to help employees find alternative employment, including early retirement options, severance packages, and transfer companies. Schulte made it clear that they're focusing on assisting individuals in securing new jobs while maintaining the job cuts figure at 11,000.
The union IG Metall has voiced its opposition to these plans. Back in November, Thyssenkrupp Steel unveiled a plan to slash the current nearly 27,000 jobs down to 16,000 over six years. This strategic move includes cutting 5,000 positions through production and administrative adjustments, as well as outsourcing 6,000 jobs to external service providers or selling off business units.
IG Metall didn't mince words when they criticized Thyssenkrupp's moves last year. In response, the union demanded that negotiations prioritize dismissals and plant closures based on operational reasons being ruled out and the company's long-term financing being guaranteed as a prerequisite.
Fast forward to 2025, and Thyssenkrupp Steel and IG Metall have reached an agreement in principle regarding the company's restructuring. The end goal is to restore competitiveness and ensure a steel company ready for the future (see May 2025 restructuring agreement update). The plan aims to avoid job losses due to operational reasons, although the initial 11,000 job cuts or outsourcings still stand.
Currently, the focus is on job preservation and the future of various sites. Significant progress has been made, with negotiations revolving around protecting jobs, securing plant operations, and resolving wage issues before any potential investor involvement (such as the sale of additional stakes to Daniel Kretinsky). The immediate shutdown of the plant in Kreuztal-Eichen is not on the table at the moment, with a decision on its continued operation expected by 2027/2028 (see Future of Plants).
Stay tuned for more updates on this developing story! The battle to save jobs continues as Thyssenkrupp Steel Europe and IG Metall work together to secure a brighter future for employees and the steel industry.
- The social plan proposed by Thyssenkrupp aims to assist employees in finding alternative employment within various EC countries, which could potentially involve finance and business sectors as well.
- As part of the negotiations with the IG Metall union, Thyssenkrupp may need to secure long-term financing for the steel company, as industrial developments play a crucial role in the overall restructuring plan and job preservation efforts.
