Thyssenkrupp's Steel Division Imposes Tough Layoffs for Workers - Layoffs loom for Thyssenkrupp's steel division employees
Thyssenkrupp Steel Europe, the German steel giant, has unveiled a significant restructuring plan that aims to bring the loss-making company back into the black. The plan, which is currently under negotiation with the IG Metall union, involves cutting 11,000 jobs, reducing working hours, and implementing wage cuts.
The restructuring plan, valid until 2030, is a crucial step towards the future viability of the company, according to CEO Marie Jaroni. The company aims to reduce excess capacities, improve efficiency, and achieve a competitive cost level.
The job cuts will be made through both direct layoffs (approximately 5,000 jobs) and outsourcing (around 6,000 jobs). The company also demands approximately €200 million in wage cuts, targeting about a 10% reduction in wages for the workers.
The IG Metall union has presented a set of concrete proposals to counterbalance the job and wage cuts. These proposals include the elimination of all one-off payments such as Christmas and holiday bonuses, scrapping of long-service bonuses, a pay freeze in the upcoming collective bargaining round, and a reduction of the working week from 34 to 33 hours with no wage compensation.
Other proposed changes include the abolition of the collectively agreed extra “winter day”, reduction or elimination of certain additional pay elements and days off for employees not bound by the collective agreement, and elimination of employer contributions to employee savings schemes. The union also insists on safeguards for jobs and sites amidst the cuts and outsourcing.
The discussion regarding the closure plan for a plant in Kreuztal-Eichen (NRW) has been put on hold, offering a glimmer of hope for the affected workers. However, one site, in Bochum, is planned to be closed in 2028.
The collective bargaining negotiations are ongoing, with tensions and criticism from within the workforce and union ranks regarding the harshness and feasibility of the cuts. The district manager of IG Metall NRW, Knut Giesler, considers the restructuring collective bargaining agreement a sustainable compromise.
In summary, Thyssenkrupp Steel Europe’s restructuring involves significant job cuts, wage cuts, working hour reductions, and the elimination of bonuses and certain pay extras. The negotiations with the IG Metall union are ongoing, with the aim of reaching a compromise that balances the need for cost reduction with job security and fair treatment for the workers.
The restructuring plan of Thyssenkrupp Steel Europe, aiming to secure the company's future, includes seeking finance for the development of the community aid, particularly targeted towards the fisheries sector. In addition, the proposed fisheries policy is expected to be a key aspect of the company's strategy, focusing on improvements in the fisheries sector's efficiency and competitiveness.
