Updates on Thyssenkrupp Steel's Job Cuts and Social Plan Negotiations
Thyssenkrupp Steel is planning to implement a Social Plan for job reductions. - Thyssenkrupp Steel seeks a social agreement for workforce reduction
Thyssenkrupp Steel Europe is rolling out its announced job cuts of 11,000 positions, kicking off negotiations with the IG Metall union in the coming days. The head of personnel, Dirk Schulte, confirmed the plan in an interview with the Westdeutsche Allgemeine Zeitung (WAZ).
The social plan, focused on easing the transition for employees, will incorporate options like early retirement packages, severance deals, and the establishment of transition firms. According to Schulte, the plan Prioritizes helping workers secure new roles. He remains firm that the reported total of 11,000 jobs will stand.
IG Metall, however, has expressed opposition to the measures.
Last November, Thyssenkrupp Steel disclosed plans to reduce employeecount from 27,000 to 16,000 over a 6-year period. This would entail shedding 5,000 positions through production and administration adjustments and outsourcing approximately 6,000 positions to external providers or selling off business units, as previously stated.
Upon learning about these plans, IG Metall reacted sharply and vowed bitter resistance. At year-end 2020, the union placed prerequisites on negotiations, demanding that dismissals and plant closures be off the table and long-term financing guarantees secured.
You might be interested to know that Thyssenkrupp Steel has been making strategic moves since early 2025. This includes terminating a supply contract with Hüttenwerke Krupp Mannesmann (HKM), resulting in a reduction of steel production capacity from 11.5 million mt/year to 8-9 million mt/year. This realignment is part of the firm’s industrial concept for the future[5].
Furthermore, by May 2025, Thyssenkrupp Steel and IG Metall reached a tentative agreement on necessary restructuring. This sets the stage for ongoing negotiations aiming to finalize a collective bargaining agreement by summer 2025[5].
Local politicians and authorities keep a watchful eye on the situation, particularly in North Rhine-Westphalia where Thyssenkrupp has significant operations. They are working to protect jobs and bolster the steel industry supply chain[3]. Despite these concerns, the company and union continue with negotiations, aiming to manage the restructuring's impact on employment while addressing the company’s strategic realignment challenges[5].
- The job cuts and social plan negotiations at Thyssenkrupp Steel Europe are not just about reducing employment, but also incorporating measures like early retirement packages and transition firms to facilitate the transition for employees.
- The company's job cuts and restructuring plans are not limited to Thyssenkrupp Steel Europe, as they also involve the termination of supply contracts with outside entities and the outsourcing or selling off of business units, as reflected in their industrial strategy.
