Comprehensive Restructuring Package Approved
Thyssenkrupp and the IG Metall union have concluded a groundbreaking restructuring collective agreement that announces extensive changes for Germany’s largest steel manufacturer. The goal is to transform the company through various measures such as the socially acceptable reduction of around 5,300 jobs by 2028/29, with 3,700 jobs affected by 2027/28.
Changes in Detail
- Closure of Facilities: Reduction of excess capacities to increase efficiency.
- Reduction of Working Hours and Lower Bonus Payments to cut costs.
- Exclusion of Operational Dismissals until 2030 provides protection for employees.
- Guarantees for Locations: Maintenance of existing facilities with additional investments.
After intensive three-day negotiations, this agreement represents a compromise that combines cutbacks with protective mechanisms. IG Metall assesses the outcome as a viable compromise despite initial resistance.
Economic Opportunities
NRW Labor Minister Karl-Josef Laumann praised the agreement as a sign of effective social partnership. For investors, this restructuring represents a strategic realignment aimed at long-term competitiveness. Technically, the stock remains promising amidst the measures.
Overall, this agreement marks a significant turning point for Thyssenkrupp Steel Europe with profound implications for market structure, employment, and investor interests in the German steel sector.