Thyssenkrupp Steel: Negotiations Underway on Capacity and Job Cuts
Thyssenkrupp Steel, Germany’s largest steel producer, is exploring potential movement in the ongoing dispute with employee representatives over planned capacity and job cuts. According to Jens Schulte, Thyssenkrupp’s Chief Financial Officer, the parties are engaging in "information exchange rounds" to address the issue.
"The parties will then decide when to enter into official negotiations from there," Schulte stated. He expressed optimism that the parties would work together constructively to move forward.
The steel division operates under the "Montanmitbestimmung" system, where employers and employees have equal representation on the decision-making supervisory board.
Background and Restructuring Plan
Thyssenkrupp Steel, a subsidiary of the Thyssenkrupp industrial conglomerate, employs approximately 27,000 individuals. The division is undergoing a restructuring process, with plans to spin it off into a separate entity. A joint venture with Czech energy company EPCG, owned by billionaire Daniel Kretinsky, is in the works. Kretinsky currently holds a 20% stake in the division.
In November, Thyssenkrupp Steel unveiled measures aimed at restoring its competitiveness. These measures include the closure of one plant with around 600 employees and a significant reduction in capacity. The plan outlines the elimination of approximately 5,000 positions by 2030, primarily through attrition. An additional 6,000 jobs are slated for outsourcing or sale.
Union Concerns and Negotiations
The IG Metall union has expressed reservations about the restructuring plan, particularly regarding potential forced layoffs and plant closures. The union has insisted on negotiating only after these concerns are addressed and ruled out.
IG Metall stated that the proposed plan raises numerous questions. The union has requested information and suggested a format for the information exchange rounds. However, these rounds have not yet taken place.
"IG Metall will negotiate only when it is clear that the red lines of no forced layoffs and no plant closures are not crossed," a spokesperson emphasized.
Impact on Partnership with Kretinsky
Schulte highlighted that the negotiations between management and employees serve as a "linchpin" for discussions with Kretinsky regarding an increase in his stake.
"The results of these negotiations will shape and implement our new business plan," Schulte explained.
He added that discussions with Kretinsky will intensify once the negotiations between management and IG Metall reach an advanced stage.
"We are in close contact with Mr. Kretinsky," Schulte emphasized. "The negotiations with him will become more intensive when we have largely completed or made significant progress in the negotiations between the steel management and IG Metall. That is the most important task at hand, and we need to make progress there."
