Breaking: Thyssenkrupp Steel's Job-Saving Social Plan in Works, Union Tensions Remain High
Thyssenkrupp Steel to Enact Socio-Economic Measures for Redundancies - Thyssenkrupp Steel is seeking a social plan for planned job reductions.
Thyssenkrupp Steel Europe, the German steel titan, is gearing up for a social plan aimed at retaining 11,000 jobs amidst potential cuts. The announcement comes as negotiations with the IG Metall union are imminent, according to Dirk Schulte, the company's new HR head, in an interview with Westdeutsche Allgemeine Zeitung (WAZ).
The social plan encompasses various strategies such as early retirement options, severance packages, and transfer companies. Schulte underscored that the focus will be on assisting employees in finding alternative jobs, maintaining, "The number 11,000 stands."
Despite these efforts, the IG Metall union displays firm opposition to the plans. In late 2021, Thyssenkrupp Steel presented a restructuring strategy to reduce its workforce from the current 27,000 to 16,000 over a six-year period. This reduction would involve 5,000 jobs alterations in production and administration by 2030, and an additional 6,000 jobs outsourced to third-party providers or divested, as per the company's announcements.
IG Metall's response was sharp and resolute, with the union vowing "bitter resistance." At the end of last year, they demanded essential conditions for negotiations, including the elimination of dismissals and plant closures for operational reasons, as well as the securing of the company's long-term financing.
As we move towards the summer of 2025, a potential agreement could be in sight, with both parties working towards a collective bargaining agreement. Their focus lies in devising a long-term vision that ensures job security, employee prospects, and a sensitive approach to workforce restructuring. However, wage negotiations still pose a significant challenge.
ThyssenKrupp, Social Plan, IG Metall, Metall, Job Cuts, Germany, Thyssenkrupp Steel Europe, WAZ, Dirk Schulte, Duisburg
Enrichment Data:- The current status of the social plan negotiations between Thyssenkrupp Steel Europe and IG Metall involves an agreement in principle on restructuring, reached in May 2025.- Key aspects of the agreement include restructuring and job security, wage negotiations, and developing a future vision for employees and sites.- The plant in Kreuztal-Eichen is not currently slated for closure, with a decision on its continued operation expected by 2027/2028.- IG Metall and Thyssenkrupp are working together to avoid compulsory layoffs for operational reasons, which were previously announced to be up to 11,000 positions in the steel division.- Resolving wage negotiations is crucial for the company to proceed with selling an additional stake in its steel business to investor Daniel Kretinsky.
- The social plan, currently under negotiation between Thyssenkrupp Steel Europe and IG Metall, endeavors to retain 11,000 jobs, with a focus on alternative employment and restructuring strategies, while maintaining opposition from the union.
- In the steel industry of EC countries, the successful conclusion of these negotiations could pave the way for long-term financing and future investments, contingent upon progress in wage negotiations.
