Thyssenkrupp's Steel Division: Navigating Job Cuts and a Social Plan
Thyssenkrupp - Steel Division Pushes for Social Plan While Advocating for Job Reductions - Thyssenkrupp steel industry proposes a social plan, maintaining commitment to job cuts
Dirk Schulte, the man in charge, has boldly declared, "The number 11,000 is set." And by that, he means job reductions are on the horizon. Schulte, Thyssenkrupp's COO, revealed this hard-hitting decision due to the inefficiencies in their steel production compared to the industry competition.
"We need to change that," Schulte emphasized, suggesting that the current situation is not sustainable. A combined 5,000 jobs will be axed, with another 6,000 outsource to external parties.
Naturally, the focus of the social plan should revolve around helping employees snag new jobs, according to Schulte. Discussions with trade unions, notably IG Metall, are imminent.
Tensions with IG Metall and Thyssenkrupp dissipated earlier this May, following intense negotiations culminating in a preliminary agreement. The objective of these talks is to reach a collective bargaining agreement that ensures employment stability, location retention, and the necessary investments for the green transformation. Terminations due to operational reasons are to be side-stepped.
Thyssenkrupp's steel division has seen better days, having battled financial hurdles over the years. The company yearns to sell the steel subsidiary, with the EP Group, led by Czech businessman Daniel Kretinsky, scooping up a 20% stake. Further negotiations will escalate their ownership to 30%.
The Steel Division's restructuring journey doesn't stop there. A strategic enterprise overhaul is underway, with Thyssenkrupp Steel Europe morphing into a 50-50 joint venture with the EP Corporate Group (EPCG). The underlying goal is to streamline single-segment operations into an entrepreneurially flexible and transparent structure, better positioned for third-party investments.
Ultimately, Thyssenkrupp aims to transition into a holding company, maintaining stakes in its independent subsidiaries to enhance flexibility and transparency in all aspects of its diverse operations.
The community policy being drafted by Thyssenkrupp's steel division, in response to the announced job cuts, could potentially include vocational training programs to aid employees in securing new jobs within the business or other sectors. In order to finance this social initiative, Thyssenkrupp may negotiate with the EP Corporate Group, who have expressed interest in investing in Thyssenkrupp's steel subsidiary.
