Thyssenkrupp Steel's Job Cuts and the Social Plan: A Current Overview
Steel manufacturer Thyssenkrupp to implement a social plan, aiming at job reductions. - Thyssenkrupp Steel Seeks a Social Agreement for Workforce Reductions
In the heart of Germany, Thyssenkrupp Steel Europe, the country's largest steel titan, is gearing up for a significant restructuring. After announcing the imminent job cuts of 11,000 positions in late November, the company is now ready to dive into negotiations with IG Metall, the powerful metalworkers' union.
According to Dirk Schulte, the new head of personnel, these discussions with IG Metall will kick off soon. He hinted at the negotiations' focus, stating, "The main focus is on helping people find new jobs." The number of job cuts, at 11,000, still stands firm.
IG Metall, however, has expressed vocal opposition to these plans. Back in November 2021, Thyssenkrupp Steel proposed reducing its workforce from the current 27,000 to 16,000 over six years. This reduction would be achieved by trimming 5,000 jobs through production and administrative adjustments, and outsourcing another 6,000 positions to external service providers or selling them off.
IG Metall's response was swift and grim, with the union announcing "bitter resistance." In the final months of 2021, IG Metall demanded certain conditions before engaging in negotiations, including the exclusion of dismissals and plant closures due to operational reasons, and the securing of Thyssenkrupp's long-term financing.
Recent developments suggest that immediate plant closures, such as at Kreuztal-Eichen, are not imminent. Instead, a short-term location optimization concept is being implemented. A decision regarding the plant's future is expected by 2027/2028.
While an agreement in principle on restructuring has been reached, several key issues remain unresolved. The most critical hurdle is resolving wage negotiations, which must be addressed before Thyssenkrupp can move forward with selling an additional 30% stake in its steel business to investor Daniel Kretinsky.
- ThyssenKrupp
- Social Plan
- IG Metall
- Metall
- Job Cuts
- Germany
- Thyssenkrupp Steel Europe
- Daniel Kretinsky
- Duisburg
Note: Progress has been made in the social plan negotiations between Thyssenkrupp Steel Europe and IG Metall, with an agreement in principle on restructuring paving the way for further negotiations aimed at concluding a collective bargaining agreement by summer 2025. Key issues, such as wage negotiations and plant closures, remain unresolved. The primary goal of both parties is to avoid layoffs for operational reasons.
- Given the agreement in principle on restructuring between Thyssenkrupp Steel Europe and IG Metall, discussions are ongoing for concluding a collective bargaining agreement by summer 2025, focusing on resolving key issues, such as wage negotiations and plant closures, to avoid operational layoffs.
- As Thyssenkrupp Steel Europe moves forward with the implementation of the social plan, finance plays a crucial role in these negotiations, with the future sale of an additional 30% stake in their steel business hinging on the resolution of these critical issues between Thyssenkrupp and IG Metall.
