Thyssenkrupp: Preparing for a Penultimate Steel Act, Slashing Jobs and Forging New Alliances
Thyssenkrupp Steel Division Unearths Social Plan and Remains Committed to Job Reductions - Thyssenkrupp Announces Social Plan for Steel Sector and Remains Committed to Job Reduction Strategy
Let's get straight to the point, mate. , Thyssenkrupp's bigwig, has accepted that the number of jobbers in their steel division will dwindle to an eyewatering 11,000. He reckons his dad's old gang needs to shed these weighty numbers since the steel production is costing a bomb compared to other players in the game.
So, what's the plan? Well, 5,000 of these jobs are about to disappear, kaput, while another will be subcontracted to agencies or third-party companies. Shocking, isn't it? But here's the twist: Schulte is all about helping the surviving workers land a new gig. Talks with , the union, are supposed to begin soon.
Before you ask, yes, the union has been in a tiff with for a while now. However, in early May, they kissed and made up, sort of. They agreed on a basic restructuring strategy for the steel division. Their ultimate goal? A collective agreement that keeps jobs and production in the heartland, encourages investments for green transformation, and nixes operational layoffs.
Now, the steel division of old has been struggling for ages. So, the conglomerate wished to unload the steel subsidiary. The , helmed by , a Czech biz tycoon, has already purchased a chunky 20% stake in Steel. Another whopping 30% is on the cards.
- Steel Division
- Job Cuts and Reductions
- Outsourcing and Strategic Partnerships
- and
- Union
Insights From the Enrichment Data
- Up to out of jobs at the Essen headquarters are on the chopping block, with an additional administrative roles at risk elsewhere in the company.
- The steel division has already started partnering with the (EPCG) through a 50-50 joint venture for . The plan is to procure the remaining stake at a later stage.
- The conglomerate aims to list several segments on the stock market or secure third-party investments, aiming to retain majority control in the independent businesses that result.
- Negotiations with have focused on working out a social contract to offer support, security, and transition assistance to affected workers and safeguard the long-term prospects of the businesses.
- The union is demanding a clear vision for the company, greater involvement in shaping that vision, and the exclusion of mandatory layoffs.
- Thyssenkrupp has maintained that its ultimate goal is to provide a secure and prosperous future for its workers.
- Dirk Schulte, Thyssenkrupp's CEO, plans to reduce the workforce in the steel division from 11,000 to 5,000 through job cuts, with another 6,000 jobs outsourced to third-party companies.
- Thyssenkrupp has been in discussions with IG Metall, the union, to negotiate a collective agreement that focuses on job retention, Green transformation investments, and avoiding operational layoffs.
- Talks with IG Metall have also centered around providing support, security, and transition assistance to affected workers and safeguarding the long-term prospects of the businesses.
- The union has been demanding a clear vision for the company, greater involvement in shaping that vision, and the exclusion of mandatory layoffs.
- Thyssenkrupp Steel Division is seeking to unload its steel subsidiary, with the EP Group, led by Daniel Kretinsky, already acquiring 20% of the stake, with plans to purchase an additional 30%.
- The conglomerate aims to list several segments on the stock market or secure third-party investments, aiming to retain majority control in the independent businesses that result.
- The company's continued focus is on providing a secure and prosperous future for its workers, and they have been working with the EP Corporate Group (EPCG) through a 50-50 joint venture for Thyssenkrupp Steel Europe.
