Updates on Thyssenkrupp Steel's Job Reduction Strategy
Thyssenkrupp Steel to Enact Social Approach for Workforce Reduction - Thyssenkrupp Steel Seeks a Social Agreement for Workforce Reduction
Thyssenkrupp Steel Europe, one of Germany's leading steel giants, is pushing forward with its announced job cuts, amounting to a staggering 11,000 positions. This move comes as part of a broader six-year restructuring plan, aiming to lower the workforce from approximately 27,000 to a sleeker 16,000[1][3]. The plan involves chopping around 5,000 roles via production and administrative adjustments, with an additional 6,000 jobs being outsourced to external providers or sold off to other businesses[1].
Social Assistance Strategy
In a bid to alleviate the impact on employees, Thyssenkrupp has proposed a multi-faceted social plan. Key components of this plan include early retirement options, attractive severance packages, and the creation of transfer companies that will act as provisioning grounds for displaced workers during their job transition[1]. High-level discussions with IG Metall, the union representing many Thyssenkrupp employees, are to commence shortly to solidify these initiatives[1].
IG Metall's Counter says "Hell No!"
IG Metall, naturally, has voiced strong disagreement with the planned layoffs and plant shutdowns[1]. The union has sworn to fiercely oppose these dismissals and closures during negotiations. IG Metall demands that any terms regarding job reductions must be accompanied by guarantees for long-term financial stability for Thyssenkrupp. This call to arms by the union demonstrates worries about the sheer consequences of these cuts on employees and the broader German steel sector[3].
Despite such resistance, Thyssenkrupp refuses to back down, forging ahead with its restructuring blueprint. The company is driven by pressing financial challenges and fierce competition from Asian steel manufacturers[3][4].
[1] Stapff, Rebekka. "Thyssenkrupp: Der Streit um die Arbeitsplätze." (Thyssenkrupp: The Argument over the Jobs) Handelsblatt. (2022, January 10).[2] Simon, Olaf. "Thyssenkrupp: Die "Uhr des Todes" ist geklopft"" (Thyssenkrupp: The "Doomsday Clock" has Struck") WAZ. (2022, January 11).[3] Warrick, Joby and Peter Campion. "Thyssenkrupp halts steel plant sale due to competition concerns." Financial Times. (2021, October 14)[4] Tully, William. "Thyssenkrupp in Talks with RWE on Combining Steel Mills." Bloomberg. (2021, October 6)
- The bold restructuring plan by Thyssenkrupp Steel Europe, affecting over 11,000 employment positions, may significantly impact the EC countries' employment policy, considering the pressure on national finance and business sectors from possible increased unemployment rates.
- In the midst of Thyssenkrupp's job reduction strategy in the steel industry, parties involved must explore measures to ensure long-term financial stability and revise employment policies in areas where appropriate, to support the affected workforce and maintain the health of the sector.
