Doing Away with Excess: Thyssenkrupp Steel's Strategic Job Cuts and Social Plan
Thyssenkrupp's steel division sets in motion a social strategy, insisting on workforce reductions - Thyssenkrupp Instead Contemplates Social Plan and Remains Committed to Job Reductions
Dirk Schulte, the man behind the curtain, has spoken up. His words: "11,000, it's set!" He justifies this bold move by the steel behemoth, Thyssenkrupp, pointing fingers at facilities operating overtime without reaching full capacity. This ends up causing unnecessary expenses. He's not wrong, times are changing and it's high time they adapted. So, 5,000 jobs are set to disappear, with another 6,000 being outsourced.
Schulte's main concern, it seems, is helping workers find new opportunities. Chats with IG Metall, the union, are going to start before you can say "steel mill."
In early May, an agreement was reached between the union and the company, following a heated standoff. The aim was to create a collective bargaining agreement that ensures job security, keeps production sites running, and provides the necessary investments for a green transformation. Firings due to operational reasons should ideally be a no-no.
Thyssenkrupp's steel division has been on a rocky road for quite some time now. The conglomerate is eager to sell its steel subsidiary. The Czech businessman Daniel Kretinsky's EP Group has already snatched a 20 percent stake in Thyssenkrupp Steel, with plans to grab another 30 percent.
As for the upcoming social plan, Thyssenkrupp plans to spin off all its business segments, including the steel division, and invite third-party investors into the fray. The aim is to make each division stand on its own, ready to take on the capital markets. This way, they hope to boost growth and performance across the board.
The labor unions are understandably concerned about potential job losses despite Thyssenkrupp's promises of a secure future for its over 96,000 employees across the globe. Media reports hint at job cuts at the corporate headquarters and administrative roles, but specifics about the steel division are scarce. Union participation in crafting the "future vision" of the reorganization includes demands for zero compulsory redundancies and unclear indications for various sites.
Overall, Thyssenkrupp aims to reshape its employees' future with restructuring efforts. However, job security concerns remain, especially in administrative roles. It's a risky move, but maybe it's time to forge new paths in the ever-evolving world of industry.
- In the process of restructuring, Thyssenkrupp plans to reduce excess costs by cutting 11,000 jobs and outsourcing another 6,000, with a focus on vocational training to help affected workers find new opportunities in the industry.
- Thyssenkrupp's strategic plan includes inviting third-party investors into the reorganized business segments, such as the steel division, for financial growth and performance enhancement, with the aim of making each division self-sufficient in the capital markets.
