Thyssenkrupp Steel: Social Plan Negotiations Amid Job Cuts
Thyssenkrupp Steel Set to Enact Layoff and Severance Package - Thyssenkrupp Steel Proposes Social Plan for Layoffs
Germany's biggest steel corporation, Thyssenkrupp Steel Europe, is ready to initiate the 11,000 job cuts announced in late November, aiming to put a social plan in motion. IG Metall, the union, will soon engage in discussions with the company, as per Dirk Schulte, Thyssenkrupp's new HR boss, in an interview with Westdeutsche Allgemeine Zeitung (WAZ).
The social plan encompasses provisions such as early retirement packages, severance deals, and transfer companies. Schulte stressed, "Our main focus is on aiding people in securing new jobs." Despite the set number of 11,000, he reaffirmed the figure.
The IG Metall union has made it clear it will offer strong resistance.
Thyssenkrupp Steel revealed restructuring plans in November 2021, aiming to shrink the workforce from the current 27,000 to 16,000 over six years. By the end of 2030, 5,000 positions will be eliminated through production and administrative adjustments, while an additional 6,000 will be farmed out to external service providers or separated as businesses.
The IG Metall union responded harshly, voicing "bitter resistance." At the year-end, the union proposed that dismissals and plant closures due to operational issues should be ruled out, and the company's long-term financing be guaranteed, as a condition for negotiations.
- ThyssenKrupp
- Social Plan
- IG Metall
- ** Metall**
- Job Cuts
- Germany
- Thyssenkrupp Steel Europe
- WAZ
- Dirk Schulte
- Duisburg
Behind the scenes, Thyssenkrupp Steel's social plan negotiations with IG Metall are part of a broader corporate restructuring endeavor for ThyssenKrupp. Key points in the negotiations include:
- Agreement Framework: Thyssenkrupp and IG Metall have agreed on the restructuring plan's principle, with a focus on job security and prospects for affected businesses.
- Union Concerns: The union demands sensitivity from the executive board regarding employee treatment, with Tekin Nasikkol, the Group Works Council chairman, emphasizing the need for a more compassionate approach.
- Future Vision: IG Metall is pushing for involvement in crafting a "future vision" that encompasses prospects for employees and sites, aiming to ensure the success of the reorganization without compulsory redundancies.
- Restructuring Goals: Negotiations aim to secure jobs and maintain stability amidst the significant restructuring plans.
Progress and challenges in the negotiations entail a restructuring context marked by Thyssenkrupp's steps to reduce capacity, including the termination of the supply contract with Hüttenwerke Krupp Mannesmann (HKM). The global market environment remains tough, with estimates of a more stable market in the second half of the year. Negotiations are expected to lead to a collective bargaining agreement by summer 2025. External factors such as increased U.S. steel tariffs add to the restructuring complications by bringing uncertainty and potential economic risks.
- In the context of Thyssenkrupp Steel's corporate restructuring, the social plan negotiations with IG Metall aim to balance job security and prospects for affected businesses, focusing on a more compassionate approach towards employees.
- As Thyssenkrupp moves forward with its restructuring goals, the union IG Metall is advocating for a future vision that includes prospects for employees and sites, hoping to ensure success without compulsory redundancies amidst significant restructuring plans.
