Thyssenkrupp Shifts Gears: Steel Division's Restructuring and Job Changes
Thyssenkrupp Steel Division Intends to Implement Socio-Economic Measures and Maintains Demand for Workforce Reduction - Thyssenkrupp Steel Division Considers Social Plan and Remains Committed to Job Reductions
In a surprising move, ThyssenKrupp's steel division is facing a massive revamp, as the industrial conglomerate grapples with financial hurdles and strives to boost competitiveness. Let's delve into the details.
ThyssenKrupp's Restructuring Saga
The corporate restructuring plan underway at ThyssenKrupp targets its various business segments, with a primary focus on the steel division. The aim is to address long-standing financial troubles and ensure survival in the cut-throat steel market, particularly in the face of fierce competition from Asian rivals [1][4].
Steering the Social Plan
The core objective of the social plan for the steel division is to safeguard jobs and nurture growth opportunities amidst these tumultuous changes. negotiations with the employee representatives, including the Group Works Council and IG Metall, will commence shortly [2].
The Numbers Game
Driven by financial woes, ThyssenKrupp's steel division plans to shed around 11,000 jobs, with 5,000 positions disappearing through redundancies and another 6,000 moving offshore [4]. The gabster, Dirk Schulte, justifies this decision by pointing to plants running at full capacity yet not operating at optimal levels [4].
A Brighter Future?
In early May, the union and the company reached a preliminary agreement, laying the groundwork for further negotiations. The ultimate goal is a collective bargaining agreement that strengthens employment, secures locations, and supports crucial investments for the green transformation [2]. The plan is to prevent dismissals for operational reasons.
Investors on Deck
The EP Group of Czech businessman Daniel Kretinsky has bought a 20% stake in ThyssenKrupp Steel, with plans to acquire another 30% [4]. This strategic partnership marks a paradigm shift in the company's ownership structure, potentially opening doors for increased diversification.
[1] https://www.chemicalweek.com/en/thyssenkrupp-steel-jv-ep-group[2] https://www.reuters.com/business/thyssenkrupp-steel-plans-cut-6000-jobs-outsourcing-2021-04-29/[3] https://www.dw.com/en/thyssenkrupp-steel-to-cut-5000-jobs-in-new-plan-to-realign-business/a-57751816[4] https://www.nytimes.com/2021/04/29/business/thyssenkrupp-steel-jobs.html
- In the process of restructuring, ThyssenKrupp's steel division aims to enhance its competitiveness in the steel industry by focusing on vocational training programs, potentially equipping employees with the necessary skills for the manufacturing sector.
- As part of the collective bargaining agreement, ThyssenKrupp and the unions will discuss strategies to strengthen employment, including finance-backed investments for business expansions, potentially boosting the division's growth and job security.
