Unraveling the Steel Saga: Thyssenkrupp Steels' Job Cuts Maneuver
Thyssenkrupp Steel Announces Job Reduction Strategy: Social Plan for Layoffs - Thyssenkrupp Steel Proposes a Social Scheme for Workforce Reduction
Thyssenkrupp Steel Europe is making a move, heels dug in to carry on with the whopping 11,000 job cuts announced late last November. Their goal? A social plan. Dirk Schulte, the new head of personnel, has dropped a hint that negotiations with IG Metall, the mighty union, are on the horizon, as reported by the West German General Newspaper (WAZ).
Prepare for a tidal wave of changes in the form of early retirements, severance packages, and transfer companies, Schulte hinted. Sounding optimistic, Schulte expressed that the focal point lies firmly in aiding employees in their quest for new opportunities. He assured that the door to 11,000 job cuts remains resolute.
IG Metall, the union with the iron will, has made it clear it's far from swallowing this bitter pill. Back in November 2021, Thyssenkrupp Steel presented a six-year blueprint to shrink its workforce by approximately two-thirds, from the present 27,000 to a skeletal 16,000. This grand design involves a 5,000-job trim through production and administrative adjustments, and divesting another 6,000 jobs to external providers or offloading business units[1].
IG Metall's retort was a swift blow of criticism and the declaration of "wrenching resistance"[2]. The union demanded, as a prerequisite for negotiations, that dismissals and plant shutdowns stemming from operational factors be put off the table, and Thyssenkrupp's long-term financing guarantees be secured[1].
However, recent news points towards an overall agreement between Thyssenkrupp Steel Europe and the IG Metall union, a stepping stone towards a collective bargaining agreement, set to be finalized by the summer of 2025[1][3]. This agreement is a crucial lynchpin in the reinvention of Thyssenkrupp Steel division, with the ultimate goal of bolstering competitiveness and ensuring the company remains a powerhouse for the future.
Notably, the immediate closure of the plant in Kreuztal-Eichen appears to be off the table for the time being, with a location optimization concept drafted in its place[1][2]. A final decision on this plant's fate is slated for 2027/2028[1][2].
The issue of wage negotiations continues to loom large, creating a stumbling block that needs to be overcome before Thyssenkrupp can proceed with the sale of an additional 30% stake in its steel business to Daniel Kretinsky[1][2]. IG Metall and the Group Works Council underscore the importance of striking a delicate balance while navigating the restructuring process, with utmost care for employee concerns at heart[4].
EC countries should carefully monitor the employment policy changes in Thyssenkrupp Steel Europe, given the significant impact of the company's job cuts on the European industry, finance, and business sectors. The ongoing negotiations between Thyssenkrupp and IG Metall, the union, could shape the future employment policy within the company and the steel industry at large.
