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Thyssenkrupp cuts 3000 jobs in the steel business

2020-03-25T07:51:22.368Z


At Thyssenkrupp, the framework stands for the renovation of the steel area. A total of 3,000 jobs will be cut in the next six years. There should be no redundancies.


At Thyssenkrupp, the framework stands for the renovation of the steel area. A total of 3,000 jobs will be cut in the next six years. There should be no redundancies.

Essen (dpa) - Thyssenkrupp has reached an agreement with IG Metall to cut 3,000 jobs in its steel area. A new collective agreement stipulates that operational redundancies should be avoided.

The job security will apply until March 31, 2026, as Thyssenkrupp announced. The job cuts will affect 2,000 employees in production and 1,000 in administration. The company had around 28,000 employees in the steel sector at the end of last year.

The Ruhr area group has to renovate its steel area on its own after the EU Commission last year prohibited the long-prepared merger with the European steel division of its Indian competitor Tata.

The first step is to cut up to 2,000 jobs in the next 3 years. Another 1,000 jobs are expected to be cut by 2026. Duisburg is to be strengthened as the most important steel location for Thyssenkrupp. In return, the company plans to close plants at other locations. Among other things, 1,000 jobs will be lost in Bochum by 2026. In Duisburg, Thyssenkrupp plans to give up heavy plate production with around 800 employees.

The employee representatives were satisfied with the agreement. The collective agreement "provides security for employees in very difficult times," said Tekin Nasikkol, Chairman of the General Works Council of Thyssenkrupp Steel Europe. The North Rhine-Westphalia district manager of IG Metall, Knut Giesler, said that the chronically underinvested steel sector "is finally getting the money that is needed to meet customer requirements".

According to the company, the job cuts are the prerequisite for extensive investments in the steel sector. The new strategy provides for an additional investment framework totaling around 800 million euros over 6 years. In addition, there would be the annual investments of around 570 million euros already included in the planning.

"We put off problems too long and shied away from tough decisions," said Thyssenkrupp board member Klaus Keysberg. The job cuts give the company scope to enable steel to remain competitive in the long term. Thyssenkrupp is too complex for steel and has an "inappropriate cost structure". This is demonstrated, among other things, by the disappointing business performance in this financial year.

The agreement with the union also includes an immediate package for the Corona crisis. Among other things, it is planned to increase the short-time work allowance to 80 percent. In addition, a collectively agreed special payment is to be converted into days off. "We will have to do short-time work at many locations in the next few weeks," said HR Director Oliver Burkhard. This initially affects the production-related areas, but also the administration.

Source: merkur

All news articles on 2020-03-25

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