Workers in the steel industry agree to undergo a challenging modernization process - Reorganization of steel industry met with worker acceptance, involving difficult changes
Thyssenkrupp Steel, a major German steel producer based in Duisburg and Düsseldorf, has approved a significant restructuring plan aimed at making the company competitive once again. The plan, titled "Restructuring Steel", was negotiated between Thyssenkrupp Steel management and IG Metall in mid-July.
The restructuring tariff, which will apply until the end of the business year 2029/30, includes a reduction in working hours without wage compensation and the abolition of holiday pay. Other customary payments, such as the jubilee payment for particularly long periods of employment and the allowance for being on call, will also be reduced.
The implementation of the negotiation results is dependent on Thyssenkrupp AG's commitment to secure the financing of the agreed measures. As of now, the financing commitment for the planned measures and investments is yet to be made by Thyssenkrupp AG.
The restructuring plan is expected to result in a total annual loss for employees of around 120 million euros due to the restructuring plan. The plan also includes massive job cuts or outsourcing, affecting around 11,000 jobs. However, no dismissals due to operational reasons will occur as part of the restructuring plan.
The crisis at Thyssenkrupp Steel is partly due to economic weakness, high energy prices, and cheap imports from Asia. The company's division employed around 26,000 people as of the end of June.
The chairman of the works council of the steel division, Tekin Nasikkol, stated that they have gone to their limit and are making their maximum contribution for a hopefully positive future of steel. NRW district leader Knut Giesler emphasized the need for Thyssenkrupp AG's contribution, stating that IG Metall and the workers have fulfilled their responsibility, but now Thyssenkrupp AG is called upon to contribute its part.
The financing of the agreed measures and investments for the restructuring contract of Thyssenkrupp Steel is to be ensured by the company’s management and the financial investor Daniel Kretinsky, who plans to increase his stake in the steel subsidiary to 50 percent. However, the final financing confirmation for the transformation is still pending from Thyssenkrupp’s management.
The aim of the restructuring plan is to make Thyssenkrupp Steel competitive again. The company plans to significantly reduce its capacities from 11.5 million tons per year to 8.7 to 9 million tons. The restructuring tariff will apply until the end of the business year 2029/30.
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