ThyssenKrupp Slashes Jobs Amid Restructuring
Thyssenkrupp Steel unveils workforce reduction strategy, revealing planned job reductions - Thyssenkrupp Steel Proposes a Social Plan for Achieving Reductions in Workforce Numbers
Get ready for some major changes at Germany's biggest steel company, ThyssenKrupp! While the dance of corporate restructuring continues, 11,000 jobs are on the chopping block, according to recent reports. The company is roping in a social plan to execute these cuts, as Dirk Schulte, the new personnel chief, revealed to the Westdeutsche Allgemeine Zeitung (WAZ).
The social plan includes a mix of measures such as early retirement, severance packages, and transfer companies. Schulte highlighted that the main goal is to assist employees in finding new jobs. Emphatically, he made it clear that the job cut count, a whopping 11,000, remains constant.
The IG Metall union isn't too keen on these plans. In November 2021, ThyssenKrupp Steel disclosed proposals to dwindle its workforce from the existing 27,000 to 16,000 over six years. This translates to 5,000 jobs vanishing through production and administration tweaks and the outsourcing of another 6,000 roles to external service providers or selling off business units, as per the company's announcement.
The IG Metall responded with harsh criticism and vowed a fierce resistance. Toward the end of 2021, the union demanded plant closures and dismissals based on operational reasons be off the table as a prerequisite for negotiations and the securing of long-term financing for the company.
ThyssenKrupp: Splitting and Shifting
In the corporate chess game, ThyssenKrupp is repositioning its sectors by separating its business segments for third-party investments. This includes the transformation of its Steel Europe division into a 50-50 joint venture with the Czech energy company EP Corporate Group (EPCG) and readying Materials Services and Automotive Technology for independent operations, potentially through public listings[2][3].
Job Insecurities and Industrial Struggles
The restructuring has raised concerns about job security. Previously, ThyssenKrupp announced plans to shed over a third of its workforce in the steel division. Further job losses are looming, with reports of 500 positions disappearing at the Essen headquarters and 1,000 in administrative roles[3].
Union's Stand: Innovation but with Employee Consideration
The union, IG Metall, and the Group Works Council have shown a willingness to support strategic changes but are firm about the need for a clear future vision that addresses the interests of employees and sites. They oppose piecemeal dismantling without a vision and emphasize sensitivity in handling employee concerns[1].
Economic Stirrings: steel Industry in Tumult
The German steel industry is grappling with tough conditions, including stiff competition from China and high energy costs. The restructuring at ThyssenKrupp is a reflection of broader industry challenges and the urgent need for strategic adjustments to stay competitive[3][4].
State's Reaction: Focusing on Job Security
The North Rhine-Westphalia state government is keeping a close eye on developments, with the primary focus on safeguarding jobs in ThyssenKrupp and the steel sector as a whole[3]. The European Commission's Steel and Metals Action Plan aims to support the sector by tackling unfair trade practices[4].
- The ThyssenKrupp restructuring, involving a potential reduction of 11,000 jobs, could have a significant impact on employment policy in EC countries, as the company is based in a key member state like Germany.
- Given the economic challenges faced by the steel industry, particularly stiff competition from China and high energy costs, the European Commission's Steel and Metals Action Plan, focusing on job security and tackling unfair trade practices, may provide an opportunity for companies like ThyssenKrupp to finance business operations and maintain employment policy in EC countries.
