Title: Union Bigwig Slams CEO Contract Extension over Steely Disagreements
Contentious agreement negotiations for Thyssenkrupp's CEO
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Thyssenkrupp's bones of contention have taken a sharp turn this week, with the deputy supervisory board chairman, Jürgen Kerner, busy grumbling about extending CEO Miguel López's contract. In an opinion piece for WirtschaftsWoche, Kerner put a firm foot down, stating, "Ain't no Santa Claus here, rewards should be earned, not handed out." Bitter about the lack of progress in the steel division, he continued, "But as long as Thyssenkrupp's steel belly draggs, there ain't no reason to hand out Bobbies to the big boss."
This Friday marks the supervisory board meeting, and whispers abound that López's contract, lasting until May 2026, is set for an extension. López assumed the throne in June 2023, another topic on the board's agenda being the proposed spin-off of the marine division.
Thyssenkrupp Steel, Germany's mammoth steel manufacturer, is about to shrink its ranks. A hefty subtraction of 5,000 jobs from the current 26,000 is imminent, with another 6,000 to be spun off and made independent. EPH, the Czech energy firm owned by entrepreneur Daniel Kretinsky, already holds 20% stake, with a potential 50:50 joint venture waiting in the wings.
However, Kerner gives this plan the side-eye, musing, "We ain't got a clue if the one-percent-er is gonna keep pouring in dough for the steel pit once he's in control." Instead, Kerner suggests a sit-down about financing, warning, "If we don't get that sorted, any spin-off, makeover, or stock market-worthy steel division is gonna flop or toddle off."
Kerner's gripes on the steel division dealings are more than just common grumbles, given his labor union's influence. He's the co-chair of Germany's biggest union, IG Metall, and sits on the Thyssenkrupp board. And his disagreement with López is no small spat—the bitter resentment between them is palpable on both sides.
In the face of billions in government subsidies for green steel production, Kerner refused to cede ground on state intervention, advocating instead for a foundation solution. He raised the question, "Does the right to survive steel hinges on the common good or private gain? Maybe a foundation solves this puzzle nicely."
Source: ntv.de, dpa
Enrichment Data:
- The ongoing conflict stems from workers' dissatisfaction with López's handling of the steel unit and broader company restructuring.
- Kerner's opposition reflects a deep-seated mistrust between management and workers, with the labor representative warning of potential strikes and protests if López's contract is extended without a solid plan for the steel division.
- Kerner, as deputy chairman and union leader, holds significant influence in industrial sectors and embodies the worker-management tension at Thyssenkrupp. His stance reflects the wider struggle for control and direction at the company.
- The ongoing disagreements within Thyssenkrupp's management are not confined to the extension of CEO Miguel López's contract, as employment policies and the steel division's performance, key aspects of the business and industry sectors, are also under scrutiny.
- Kerner's calls for a foundation solution to address the steel industry's future, financial discussions, and the potential spin-off of the marine division indicate his profound involvement in corporate policy decisions, reflecting the complexity of the union's influence and the financial aspect in business dealings.
