Steels 'N' Scandals: Thyssenkrupp's Thousand- job Cut Plan Under Fire!
Thyssenkrupp Steel set to enforce workforce reduction strategy - Thyssenkrupp Steel Seeks Employment Transition Plan for Redundancies
Oh boy, buckle up! Germany's steel titan, Thyssenkrupp Steel Europe, is cooking up a storm (or rather a hurricane) with their 11,000 job-cutting proposition. Yep, you heard it right! The big, bad bosses are planning to axe approximately 11,000 jobs, and they're aiming to do it all with a cherry on top – a social plan! Dirk Schulte, the company's new HR honcho, spilled the beans to the West German General Newspaper (WAZ), confirming that negotiations with the IG Metall union are just around the corner.
Now, what's this social plan you ask? It's like a magic wand that wave's away job woes! Expect goodies such as early retirement packages, severance pay, and a whole host of transfer companies. But fret not, the main focus here isn't on shedding tears, but on helping folks find new gigs instead! Schulte assures us that the number 11,000 ain't just a promise, it's a promise!
IG Metall, on the other hand, is already kicking up a fuss. Back in 2020, they took issue with Thyssenkrupp's proposal to slash their workforce from 27,000 to 16,000 over the course of six years[5]. That'd mean cutting 5,000 jobs through production and admin tweaks and outsourcing a whopping 6,000 positions. Sounds like a rough ride, huh?
IG Metall wasn't too chuffed about this plan, stirring up some "bitter resistance"[5]. In fact, they demanded some pre-negotiation conditions, such as a commitment to avoid operational dismissals and plant closures, and a secure long-term financial future for the company[5].
As of today, May 2025, there's been an agreement in principle on restructuring between Thyssenkrupp and IG Metall[6][7]. This agreement aims to wave away layoffs due to operational reasons, focusing instead on a location optimization concept for plants like Kreuztal-Eichen[6][7]. Decisions regarding its fate are expected by 2027/2028[6][7]. But hang on, there's more! These negotiations are expected to result in a collective bargaining agreement by summer 2025, given the industrial concept presented by Thyssenkrupp's management[6][3]. Whew, that was a mouthful!
But don't think the fight's over just yet! Key obstacles remain, particularly wage negotiations, which need to be settled before certain business transactions can proceed, such as the sale of an additional stake in the steel business to investor Daniel Kretinsky[6][7].
While the unions generally support strategic realignments for job security, they stress the need for a swanky future vision with employee and site prospects[8]. Their ultimate goal? To restore the steel division's competitiveness, without major layoffs[6][3]. Watch this space! It's gonna be a rollercoaster!
In the midst of Thyssenkrupp Steel Europe's proposed 11,000 job cuts, discussions with IG Metall union are upcoming regarding a social plan that would offer early retirement, severance, and transfer packages to aid employees in finding new employment. However, the union's previous resistance to workforce reductions, as seen in 2020, indicates potential opposition to the current plan. This conflict highlights the intricate relationship between EC countries' employment policies, industries like steel and finance, and sectors such as aerospace, as companies seek to remain competitive while minimizing job losses.
