Thyssenkrupp Steel, Germany’s leading steel producer, has announced a significant rehabilitation plan to be implemented in collaboration with the union IG Metall by 2030. This plan, which includes a reduction of the workforce by 11,000 to approximately 16,000 positions, is noteworthy because it excludes layoffs due to operational reasons until 2030.
Impact on Employees
Employees can expect noticeable income reductions as the average weekly working hours will be reduced to 32.5 hours, and certain special payments will be eliminated. Those particularly affected include holiday bonuses and anniversary payments.
- Income Reductions: Average wage cuts of about eight percent.
- Elimination of Special Payments: Complete removal of holiday bonuses and reduced Christmas bonuses.
- Retirement Bridge: Support for older employees to ease the transition into retirement.
Impact on the Labor Market and Economy
The planned closure of the Bochum plant will significantly impact the local labor market. At the same time, investments in key production sites are intended to maintain Thyssenkrupp Steel’s competitiveness in the long term. This strategy aims to tackle economic challenges such as high energy prices and global competition.
Interest for Investors
The rehabilitation process could be of interest to investors as it aims to strengthen Thyssenkrupp Steel’s long-term competitiveness. Although there are risks associated with job reductions, successful restructuring could positively affect stock prices.