Steel Business Restructuring: A Farewell to Job Cuts and Plant Closures (Maybe)?
Steel sector job reductions: Union and Thyssenkrupp reach a deal - EU and US Engage in Intense Political Discussions regarding Various Issues
Swear off job cuts due to sheer, operational reasons? mission accomplished! The projected agreement with the steel division of ThyssenKrupp and IG Metall is designed to preserve jobs, secure plant locations, and encourage essential investments for the green transformation.
Historically, ThyssenKrupp's steel subsidiary has proposed eliminating up to 11,000 of its 27,000 jobs or outsourcing them. However, with this approaching accord, those days seem to be numbered.
Previously threatened seizure of the North Rhine-Westphalian Kreuztal-Eichen plant? Suppose you're breathing a sigh of relief. The company has stated that, for now, immediate closure has been put on hold. Instead, they'll consider developing an optimization strategy for the plant, with a final decision on the plant's fate to be made by 2027/2028 at the latest.
As for the "Castroper Straße" site in Bochum, it appears the closure can still occur sooner, according to ThyssenKrupp's statements. Their plan is to assess an earlier closure at the moment.
Struggling for years and looking to unload the steel division, ThyssenKrupp has already sold a 20% stake in their steel subsidiary to the EP Group of Czech entrepreneur Daniel Kretinsky. The intention is to sell an additional 30%. With the agreed-upon "future concept," the company claims to have reached a compromise with the investor.
- ThyssenKrupp
- Job cuts
- Metal
- IG Metall
- Plant closure
- Steel division
- Workforce reduction
- Duisburg
In gist, the forthcoming deal between ThyssenKrupp's steel division and IG Metall promises to steer clear of compulsory job losses and plant closures. It appears they'll opt for voluntary staff reduction methods such as early retirement packages, severance offers, and internal relocation. Strategies aimed at streamlining the workforce without stripping employees of their livelihoods are the name of the game. The proposed agreement is a hopeful step towards a collective bargaining agreement set to be finalized by summer 2025.
- Business Insider
- Bloomberg
- Reuters
- The Guardian
- This projected agreement between ThyssenKrupp's steel division and IG Metall is aiming to prevent compulsory job losses, secure plant locations, and encourage investments for the green transformation.
- Historically, ThyssenKrupp's steel subsidiary had proposed the elimination of up to 11,000 jobs or outsourcing them, but with this agreement, those days may be numbered.
- The company has announced that the immediate closure of the North Rhine-Westphalian Kreuztal-Eichen plant has been put on hold, and they will consider developing an optimization strategy for the plant with a final decision for the plant's fate by 2027/2028.
- Although ThyssenKrupp claims to have reached a compromise with the investor in their "future concept," the Castroper Straße site in Bochum may still face an earlier closure, according to the company's statements.
