Challenges and Measures
Thyssenkrupp Steel Europe is undergoing a profound restructuring, bringing significant cuts for employees. Due to the ongoing crisis caused by economic weakness, high energy prices, and cheap imports from Asia, the company is planning extensive measures for restructuring.
Restructuring Wage Agreement in Detail
Key points of the restructuring wage agreement that Thyssenkrupp Steel and IG Metall have agreed upon include:
- Salary cuts of about 8 percent through a reduction of weekly working hours from 34 to 32.5 hours, as well as the elimination of holiday pay and a reduction in Christmas bonuses.
- A socially acceptable reduction of personnel with up to 11,000 jobs, with operational layoffs excluded until 2030; instead, plant closures are to take place.
- Employees are expected to contribute approximately 200 million euros in savings per year through wage concessions and reduced special payments, with these measures initially planned for four years.
Reactions and Forecasts
IG Metall described the situation as “five minutes to twelve” for Thyssenkrupp Steel Europe and emphasized the necessity for restructuring, while simultaneously criticizing the hard hit on employees’ pockets. This financial burden is expected to have implications for market stability as it affects both the working environment and purchasing power.
Overall, this is a comprehensive restructuring process with far-reaching consequences for employees and the company itself in a challenging economic environment.