Thyssenkrupp: Steel Division's Social Plan and Steady Push for Job Changes
Thyssenkrupp Steel Division Proposes Social Strategy, Committed to Employee Redundancies - Thyssenkrupp Affirms Sectoral Social Plan and Remains Committed to Job Reductions
That's a whopping 11,000 jobs on the line, according to Dirk Schulte, and he ain't backing down. Overutilized facilities running non-stop have pushed ThyssenKrupp Steel to the financial brink, generating expenses that outstrip its competitors. Change is a must, Schulte said, and 5,000 jobs will be axed, with another 6,000 outsourced.
The heart of the social plan centers on getting people into new jobs. Discussions with the IG Metall union are imminent, with the primary focus on job stability and securing investments for a green future.
In the first week of May, a contentious dispute between the union and the company ended amicably, paving the way for further negotiations. The agreement aimed to safeguard employment, locations, and crucial investments in the ecological transformation process—a move to avoid operational dismissals.
ThyssenKrupp has been battling the steel industry for years, hoping to shed its steel subsidiary. The EP Group of Daniel Kretinsky already grabbed a 20% stake in ThyssenKrupp Steel, with another 30% in the pipeline.
- ThyssenKrupp
- Steel Division
- Job Cuts
- Job Reductions
- Social Plan
- IG Metall Union
- Dirk Schulte
- Industrial Conglomerate
- Green Transformation
Behind the Curtains
- Company-wide Restructuring: Thyssenkrupp is strategically separating all its business segments, preparing them for third-party investment. This includes a potential 50-50 joint venture between Thyssenkrupp Steel Europe and the EP Corporate Group [2][3].
- Beyond the Steel Division: News outlets reported potential job losses across the company, including up to 500 positions at the Essen headquarters and 1,000 more in administrative roles [4].
- Unions and Executive Board: Unions have advocated for "sensitivity" from the Executive Board in handling employee matters during this transformative period [1].
- Future Focus: Unions stress the need for a clear vision for the future, rather than gradual steps without direction [1].
- Negotiation Outcomes: The goal is to prevent compulsory redundancies and provide job security for affected employees. However, concerns persist about the overall impact on jobs, with up to 20,000 positions potentially at risk across the company [4].
- In an effort to secure a clear vision for the future and avoid compulsory redundancies, discussions regarding the Thyssenkrupp's social plan with the IG Metall union are of utmost importance, especially in the context of the ongoing job reductions within Thyssenkrupp Steel and the potential outsourcing of 6,000 jobs.
- To ease the financial burden generated by overutilized facilities and expenses outstripping competitors, Thyssenkrupp, an industrial conglomerate, is undergoing company-wide restructuring, strategically separating its business segments in preparation for third-party investment, which may include the creation of a potential 50-50 joint venture between Thyssenkrupp Steel Europe and the EP Corporate Group, and the potential sale of its steel subsidiary to the EP Group of Daniel Kretinsky.
