Steel Giant Thyssenkrupp: Chopping 11,000 Jobs, Employment Aid in the Works
Thyssenkrupp Steel to carry out a workforce reduction strategy - Thyssenkrupp Steel Proposes a Socio-Economic Plan for Staff Reduction
Get ready for a shifting landscape in the steel industry, folks! Thyssenkrupp Steel Europe, Germany's industrial behemoth, is gearing up to slash 11,000 positions, solidifying a plan announced back in November. Negotiations with the IG Metall union, a major player in the scene, will commence shortly, according to Dirk Schulte, Thyssenkrupp's new head of human resources, who spilled the beans to the Westdeutsche Allgemeine Zeitung (WAZ).
The upcoming social plan is expected to encompass measures like early retirement packages, severance deals, and transition companies to help employees find new opportunities. Schulte affirmed, "The number 11,000 is set in stone."
Thyssenkrupp's announcement last November pointed to a reduction of jobs from the current 27,000 down to a leaner 16,000 over the course of six years. This restructuring would entail cutting 5,000 jobs in production and administration, and offloading an additional 6,000 jobs to external service providers or selling off business units, as per the company's statement.
IG Metall has come out swinging against these moves. Last year, they demanded several preconditions for negotiations, such as a ban on dismissals and plant closures due to operational reasons, in addition to securing the company's long-term financing.
The looming question of specific plant closures, particularly at the Krupp Mannesmann steelworks in Duisburg, adds fuel to the fire. A sale has failed, and now management is trying to negotiate a closure via a “social contract” with union involvement. This approach has been used before in plant closures[3]. Clearly, the waters are murky, with labor organizations remaining fiercely critical of the process and demanding stronger protections for workers[1][3].
So, brace yourself for rough seas in the steel industry and keep a close eye on Thyssenkrupp's negotiations with IG Metall. It's going to be a nail-biter!
References:
- Thyssenkrupp Steel to Cut 11,000 Jobs by 2030 - JOC.com
- Thyssenkrupp to cut up to 5,000 more jobs at struggling European steel division - Reuters
- German steel giant Thyssenkrupp to cut 11,000 jobs by 2030 - India Today
- Unions resist Thyssenkrupp job cuts amid German steel crisis - Financial Times
- Thyssenkrupp's Downward Spiral: German Steel Giant's Plan to Cut Jobs Amid Global Steel Crisis - The Diplomat
The tumultuous steel industry, with Thyssenkrupp at its fore, is pursuing a restructuring plan that could potentially affect 11,000 EC countries' employees. This reorganization may involve measures such as early retirement packages, severance deals, and transitional companies to aid employee reintegration in new businesses.
Negotiations with IG Metall, a significant player in the industry, are forthcoming to discuss these changes. Meanwhile, finance and business analysts remain vigilant, as these negotiations could significantly impact the steel industry's future.
