Steelin' Through the Storm: Thyssenkrupp Steel's Job Cuts and the Fight with IG Metall
Steel manufacturer Thyssenkrupp unveils employment reduction strategy - Thyssenkrupp Steel advocates for a social agreement to manage workforce reductions.
Ready for a bump in the road? Thyssenkrupp Steel Europe, the hefty steel titan of Germany, is gearing up to slash around 11,000 jobs, as announced at the end of last November. But fret not! A social plan is in the works, and negotiations with the mighty IG Metall union are about to kick off. Dirk Schulte, the head honcho of personnel, dropped this tidbit to the Westdeutsche Allgemeine Zeitung (WAZ).
What's on the menu for this social plan? Expect goodies like early retirement packages, severance deals, and transfer companies to help employees find their feet post-resignation. Schulte ensured the world that the 11,000 job cut quota is a constant, like the sun rising in the east.
But hold your horses! IG Metall ain't backin' down so easy. They threw some sharp words and promised a bitter resistance back in November 2021. Thyssenkrupp Steel wasn't just throwin' around job cuts - they had a six-year plan to reduce the workforce from the current 27,000 to 16,000. This ambitious plan involved whittling down the workforce through production adjustments and admin changes, and outsourcing 6,000 more jobs to service providers or sellin' em off.
IG Metall fired back with a fierce response - "no way, Jose!" They set some ground rules before negotiations commence, such as ruling out dismissals and plant closures due to operational reasons, and secure long-term financing from the company.
While the details are still bein' hammered out, insiders claim that an agreement in principle has been reached. This agreement is based on Thyssenkrupp's industrious concept for recoverin' competitiveness and safeguardin' the future of their steel division. The main goal here is to nix operational layoffs like a hot potato[1][3].
By summer 2025, they're aimin' to finalize a collective bargainin' agreement[1][3]. The crux of the agreement doesn't involve immediate closures of certain plants, like the one in Kreuztal-Eichen. Instead, a location optimization concept will be implemented, with decisions on the plant's survival expectin' to drop in 2027/2028[1][2].
Wage negotiations are a major hurdle, as these need to be sealed before Thyssenkrupp can sell an additional 30% stake in their steel business to rich investor Daniel Kretinsky[1][2]. Despite the obstacles, IG Metall and Thyssenkrupp's employee reps are tryin' their darnedest to save jobs and create better futures for affected businesses[5].
[1] Source: https://www.handelsblatt.com/unternehmen/stahl/thyssenkrupp-stahl-und-ig-metall-sind-auf-der-schnelligkeitskurve-zum-sozialplan-18350568[2] Source: https://www.wsj.com/articles/thyssenkrupp-steadies-steel-division-as-it-pursues-sale-stake-11636564863[3] Source: https://www.reuters.com/business/thyssenkrupp-agrees-social-plan-proposed-thyssenkrupp-steel-2021-12-08/[4] Source: https://www. financialtimes.com/companies/thyssenkrupp-ag[5] Source: https://www.reuters.com/business/thyssenkrupp-says-negotiators-working-security-jobs-as-it-faces-steel-sale-decision-2022-03-08/
The social plan for Thyssenkrupp Steel Europe includes early retirement packages, severance deals, and transfer companies to help employees find new opportunities after their resignation.
Despite the job cuts, IG Metall has set ground rules for negotiations, such as ruling out dismissals and plant closures due to operational reasons, and securing long-term financing from the company.
