Slashing Steel: ThyssenKrupp's Tough Tactics for a Leaner Workforce
Thyssenkrupp Steel to Introduce Workforce Reduction Scheme for Layoffs - Thyssenkrupp Steel Proposes Job Reduction Social Plan
Germany's iron heart, ThyssenKrupp Steel, is gearing up to put its foot down on a midst-steel revolution. The steel titan, based in Duisburg, aims to trim its workforce by a whopping 11,000 positions, as announced back in November. The long-awaited discussions with the powerful IG Metall union, Germany's largest steelworkers' union, are set to kick off, according to ThyssenKrupp's new head of personnel, Dirk Schulte, who spoke to West German General Newspaper (WAZ).
The upcoming social plan will be jam-packed with a slew of measures, such as early retirement packages, severance deals, and transfer companies, all aimed at assisting employees in finding new employment opportunities. Schulte reassured the public, "The 11,000 figure stands firm."
IG Metall, however, has voiced fierce opposition to the plans. In late 2021, ThyssenKrupp Steel presented its ambitious six-year roadmap, aiming to slash its workforce from the current 27,000 to a leaner 16,000. This reduction plan involves thinning the ranks by 5,000 via production and administrative modifications and outsourcing another 6,000 positions to external service providers or selling off business units.
IG Metall's response was bitter and unyielding. The union demanded that layoffs and plant closures be off the table as a prerequisite for negotiations and that the company's long-term financing be secured.
- ThyssenKrupp
- IG Metall
- Social Plan
- Metal
- Job Cuts
- Germany
- Thyssenkrupp Steel Europe
- WAZ
- Dirk Schulte
- Duisburg
Enrichment Insights:- After heated negotiations, Thyssenkrupp Steel and IG Metall have reached an agreement in principle on restructuring, paving the way for a collective bargaining agreement by the summer of 2025[1][2][4].- The industrial concept outlined in the agreement aims to restore Thyssenkrupp Steel's competitiveness and prepare it for a bright future[1].- The union has emphasized the need for a future vision that includes prospects for employees and sites, while also expressing readiness to adapt to strategic realignments[3].- The potential sale of additional stakes in the steel business remains a significant obstacle in the wage negotiations[1][2].- A location optimization concept is being planned for the Kreuztal-Eichen plant, with a final decision on the plant's fate expected by 2027/2028[1][2].
- "Thyssenkrupp, after intense negotiations with IG Metall, has reached a preliminary agreement for restructuring, setting the stage for a collective bargaining agreement by the summer of 2025."
- "The social plan, as per the agreement, contains measures like early retirement packages, severance deals, and transfer companies to assist employees in finding new employment opportunities, while also aiming to restore Thyssenkrupp Steel's competitiveness in Germany's finance-driven business sector."
