Thyssenkrupp Job Cuts and Restructuring Sparks Concerns from State Government and Employee Representatives
Economic Minister of North Rhine-Westphalia expresses worries about Thyssenkrupp's situation
Amid rumors of drastic restructuring measures, the state government in Düsseldorf expresses concern over potential job cuts at Thyssenkrupp, a steel giant based in North Rhine-Westphalia. The Green Minister of Economics, Mona Neubaur, urges the company to provide clarity and assurance about its plans, warning against the potential disintegration of the company.
Neubaur voiced her concerns, stating, "Public speculation about the disintegration of the company is detrimental to constructive solutions. What the people of North Rhine-Westphalia, and especially the employees at Thyssenkrupp, need now is reliability and a clear direction." She emphasized the need for a strategy that is implemented with restraint, social responsibility, and a commitment to industrial locations in NRW.
The company's management has announced plans for a strategic realignment, including making all business areas independent and open to third-party participation. These changes, if properly implemented, could present an opportunity for the company, according to Neubaur. However, she stressed the importance of dialogue with employees and a clear promise that the restructuring would not come at their expense.
Meanwhile, IG Metall, the metalworkers' union, demands the exclusion of dismissals due to operational reasons. The union has expressed concern over potential disintegration plans and the gradual handover of the company to the stock market without clear visions for employees and locations in all areas. According to Jürgen Kerner, the second chairman of IG Metall and deputy chairman of Thyssenkrupp's supervisory board, "We reject carving up the company and handing it over to the stock market without future visions with perspectives for employees and locations in all areas."
In response to media reports about the planned disintegration of the company, Thyssenkrupp announced that its board would present the future direction of the entire company to the supervisory board by the end of the business year 2024/25. The company has previously announced strategic decisions such as the spin-off of a minority stake in Thyssenkrupp Marine Systems and a 50/50 joint venture with a holding company of Czech billionaire Daniel Kretinsky.
In an effort to recalibrate its steel production capacity and improve cost efficiency, Thyssenkrupp plans to use voluntary workforce reduction methods, including early retirement schemes and voluntary separation offers. The company aims to reduce its steel output from 11.5 million metric tonnes to between 8.7 and 9 million tonnes annually, which could involve potential plant closures or strategic partnerships, such as a review of options for its flagship plant in Duisburg.
The agreement reached with IG Metall outlines this approach, focusing on voluntary methods for workforce reduction to avoid mass involuntary layoffs. This collaborative approach sets a framework for future negotiations and collective bargaining agreements. The metalworkers' union has been instrumental in shaping the restructuring plan to ensure its social acceptability.
The state government and employee representatives are urging Thyssenkrupp to maintain social responsibility during their planned restructuring, as vocational training and community policies could be impacted by potential job cuts. To ensure a clear direction, Mona Neubaur, the Green Minister of Economics, stresses the need for a strategy that addresses finance, business, and vocational training, with the goal of preserving the company's strength in North Rhine-Westphalia.
