Transformation Steps at Thyssenkrupp
Thyssenkrupp and the union IG Metall have reached a significant agreement that brings far-reaching changes for Germany’s largest steel producer. The aim of the agreement is to fundamentally alter the company’s structure and make it competitive in the long term.
Restructuring and Realignment
Part of the agreement is the transformation of Thyssenkrupp into a holding structure. This is seen as a crucial step toward realigning the company and ensuring its future viability.
Staff Adjustments and Work Time Modifications
The planned measures will result in the elimination or outsourcing of up to 11,000 jobs in the steel division TKSE. At the same time, reduced working hours are planned to mitigate the impact on the workforce in a socially acceptable manner.
Cost Reduction through Wage and Bonus Adjustments
As part of the restructuring process, there will be wage cuts averaging eight percent. Additionally, bonus payments will be reduced to optimize the company’s cost structure.
Reduction of Production Capacity
Steel production is to be reduced from 11.5 million tons to approximately 8.7 to 9 million tons. This measure is taken to eliminate surplus capacity and increase efficiency.
Social Acceptability and Location Guarantees
Despite the profound changes, layoffs for operational reasons are excluded until 2030. Thyssenkrupp also commits to investing in location guarantees and facilities.
The collective agreement that includes these changes is valid until 2030 and requires the approval of IG Metall members. Furthermore, an agreement on the future financing of the division is necessary.
For investors, this agreement is highly relevant. The austerity measures could strengthen competitiveness in the steel sector and have a positive long-term impact on Thyssenkrupp’s financial stability and stock price.