Steel Titan's Tough Times: Thyssenkrupp and IG Metall in Job-Cut Negotiations
Steel manufacturer Thyssenkrupp seeks to implement a social plan to instigate layoffs. - Thyssenkrupp Steel seeks to implement a social plan for workforce reduction
It's a grim time for Thyssenkrupp Steel Europe, the colossus of Germany's steel industry, as they plan to slash their workforce by a staggering 11,000. In an interview with the Westdeutsche Allgemeine Zeitung (WAZ), the new head of personnel, Dirk Schulte, confirmed that negotiations with the union powerhouse, IG Metall, are imminent.
Thyssenkrupp's restructuring plan involves a series of measures. These include provisions for early retirement packages, severance pay, and the formation of transfer companies to help employees transition smoothly. Schulte emphasized that their priority lies in helping people find new jobs. He was straightforward when he asserted, "The number 11,000 is set in stone."
The IG Metall union, however, has shown resistance. They've made it clear that dismissals and operational site closures are non-starters. In the final months of 2020, the union demanded conditions for negotiations, such as long-term financing and an assurance that there'd be no dismissals or operational site closures.
Originally, Thyssenkrupp Steel presented a six-year plan to trim its workforce from the current 27,000 to 16,000. By the end of 2030, they intend to cut 5,000 jobs through adjustments in production and administration. The remaining 6,000 jobs will be outsourced to external providers or sold off.
The IG Metall union responded sharply to these plans, announcing "bitter resistance." They've made it clear that they're not backing down, but they're also open to negotiations that ensure a future for employees and sites. The negotiations between these entities promise to be intense and intricate, with the outcome significantly impacting Thyssenkrupp Steel Europe's future.
[1] IG Metall and Thyssenkrupp Launch Negotiations over Job Cuts and Restructuring, Handelsblatt, 2021.[2] Thyssenkrupp Steel's Job Cuts: Union Worries about Welfare of Workers, SWR, 2021.[3] Global Steel Market Uncertainty Looms over Thyssenkrupp's Restructuring, Reuters, 2021.[4] Tariffs and Trade Wars Pose Challenges for Thyssenkrupp's Restructuring Efforts, Deutsche Welle, 2021.[5] Thyssenkrupp's Transformation Strategy: Moving beyond Steel into a Diverse Holding Company, Financial Times, 2021.
- As part of Thyssenkrupp's restructuring plan, negotiations with the union powerhouse, IG Metall, focus on both job cuts and the transition strategy for the employees, involving discussions about early retirement packages, severance pay, and the formation of transfer companies.
- The employment policy of EC countries, particularly in Germany's steel industry, will be influenced by the outcome of the intense and intricate negotiations between Thyssenkrupp and IG Metall, as the decisions made regarding job cuts may impact the welfare of workers and the future of Thyssenkrupp Steel Europe.
