Giant Steel Maker, Thyssenkrupp, Sets Sail with Job Cuts and Social Plan
Thyssenkrupp Steel reveals employment reduction strategy through social plan - Thyssenkrupp Steel Proposes Employee Welfare Plan Amid Job Reduction Plans
To keep up with the changing tides, Thyssenkrupp Steel Europe, the biggest steel producer in Germany, is venturing into a major transformation. The company's new personnel head, Dirk Schulte, has disclosed plans to commence negotiations with the metalworkers' union, IG Metall, regarding a massive job reduction of 11,000 employees.
The announcement, made in November, has since sparked a wave of speculation. But now, Schulte has confirmed in an interview with the Westdeutsche Allgemeine Zeitung (WAZ) that the social plan being developed will concentrate on measures to help employees find new job opportunities.
This transformation isn't a storm-in-a-teacup. In fact, Thyssenkrupp is looking at reducing its current workforce of 27,000 to 16,000 over a six-year period. Approximately 5,000 jobs will be eliminated due to modifications in production and administrative processes by the end of 2030. Meanwhile, an additional 6,000 jobs will be outsourced or sold to external service providers as the company vows.
News of the planned changes didn't sit well with the IG Metall union. The union has been vocal in its resistance, expressing bitterness and voicing demands to put a stop to dismissals and plant closures resulting from operational reasons. The union also called for long-term financial security for the company as a precursor to discussions.
ThyssenkruppJob CutsGermanyIG MetallThyssenkrupp Steel EuropeWAZDirk SchulteDuisburg
Further Scrutiny
Restructuring plans at Thyssenkrupp extend beyond just job cuts. The company is exploring potential sale of minority stakes in various divisions, aiming to pave the way for a more diversified business model and alter the competitive landscape of the industry. Additionally, the spin-off of divisions like the submarine and warship manufacturing unit, TKMS, indicates a move towards a holding-company structure, which could influence its functioning in multiple sectors.
For IG Metall, the union remains central to negotiations, insisting on a future vision that balances employee prospects and site security. The union hopes any restructuring will lead to mutual benefits and long-term sustainability for both the company and its workforce.
As the steel industry navigates the winds of change, Thyssenkrupp's ambitious project promises to be an uncertain but significant chapter in its history.
- Despite Thyssenkrupp's plans to sell minority stakes in various divisions and adopt a holding-company structure, the metalworkers' union, IG Metall, remains focused on negotiating a future vision that balances employee prospects and site security.
- For the Thyssenkrupp's new personnel head, Dirk Schulte, the social plan being developed during negotiations with IG Metall will mainly focus on measures to help affected employees find new employment opportunities in industries or through business partnerships, such as finance.
