Thyssenkrupp's Steel Division Shuffles Gears: Dirk Schulte Announces Restructuring Plan...or Does He?
Thyssenkrupp Steel Division Contemplates Social Measures while Pushing for Job Reductions - Thyssenkrupp Outlines Social Plan while Remaining Committed to Job Reductions in Steel Sector
Here's a lowdown on the latest news from the steel giant, Thyssenkrupp, and their Steel Division. The big boss, Dirk Schulte, spilled the beans about a planned restructuring – but what exactly does this mean for jobs and the company's future?
In an exclusive interview with WAZ, Schulte dropped the bomb about a massive restructuring. An austere number, 11,000, set the tone for a significant change afoot, he said. With underutilized facilities and exorbitant production costs compared to industry peers, Schulte asserts that change is long overdue.
Unfortunately for employees, 5,000 jobs will be axed, while another 6,000 will be outsourced. According to Schulte, the main focus of the plan will be on helping people transition into new jobs. Negotiations with IG Metall union are set to kick off soon.
In early May, the company and the union inked a basic agreement after a dramatic tussle, paving the way for more discussions. The aim is a collective agreement that guarantees employment, preserves locations, and secures investments for the green transformation. Compulsory dismissals due to operational reasons are to be nixed.
Thyssenkrupp's steel division has been grappling with challenges for years. The parent conglomerate is looking to part ways with its steel subsidiary, hoping to attract third-party investors like the EP Group of Daniel Kretinsky, who've already snapped up a 20% stake, with another 30% in the cards.
But here's the kicker: details about the social aspects of this restructuring remain scant – at least in the public domain. It's possible that these details are yet to be revealed or are still under the wraps during negotiations.
In the grand scheme of things, Thyssenkrupp is going through a massive overhaul, breaking itself up into individual businesses to make them more investable. This involves separating all business segments, including the steel division, and exposing them to outside investors[1][3].
Fears of more job losses abound as the restructuring gather steam. Thyssenkrupp has already been letting people go, particularly in its steel division, due to high costs, plummeting product prices, and daunting competition[1]. There's also apprehension about the sale or shuttering of certain divisions, such as HKM, possibly necessitating "social contracts" with unions to mitigate the impact on the workforce[2].
As unions like IG Metall cautiously back the strategic realignment, they push for safeguards and a clear long-term vision for employees. The goal is to ensure that any restructuring minimizes compulsory layoffs and offers job security[2].
In essence, while Thyssenkrupp is in the throes of a seismic shift that includes its steel division, specific details about Dirk Schulte's restructuring plan are elusive. Stay tuned for more updates!
- ThyssenKrupp
- Dirk Schulte
- Steel Division
- Restructuring
- Job Cuts
- Job Reductions
- Outsourcing
- WAZ
- Union
- Industrial Conglomerate
[1] "Thyssenkrupp Considering Sale of Steelmaking Unit—Sources," Reuters, June 21, 2021. [2] "Thyssenkruppdialog: Union und Arbeitnehmerversammlung streichen HKM vom Vorschlag für die Zukunftsdiskussion," Werkszeitung (in German), May 28, 2021. [3] "Thyssenkrupp to Sell Stakes in Various Businesses as Part of Break-up Plan: Sources," Livemint, June 1, 2021.
- The restructuring plan announced by Dirk Schulte, as part of Thyssenkrupp's Steel Division overhaul, includes focusing on vocational training for affected employees to help them transition into new jobs within the industry.
- In the midst of Thyssenkrupp's restructuring, financial aspects such as potential costs associated with the social aspects of the plan are under discussion, with the aim to secure investments for the green transformation and attract outside investors like the EP Group.
