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The strategy 20-30 presented in December can thus be implemented. In total, around 3,000 of the total of 27,000 jobs are to be cut in a socially responsible manner by 2026. According to thyssenkrupp, about 1,000 will be lost in the administration, 800 jobs in the heavy plate area will be affected. There thyssenkrupp sees no development perspective within the group. In addition, starting around 2022, around 1,200 jobs will be cut by optimizing the production network. In order to make thyssenkrupp Steel technologically fit again, an additional 800 million euros will flow in addition to the annual investments in the next six years, as the group announced.
thyssenkrupp actually wanted to bring the steel business into a joint venture with Tata Steel Europe, but it failed last spring due to competition concerns raised by the EU Commission in Brussels. The traditional business has fallen behind technologically due to a lack of investment. While IG Metall had requested an employment guarantee until 2030, the management originally only wanted to provide corresponding guarantees for three years. For the heavy plate production, which has been at a loss for years, a buyer must have been found by the middle of the year, otherwise the plant in Duisburg-Httenheim should be closed.
In addition, thyssenkrupp and IG Metall have also agreed on an “Corona crisis” immediate package. “The parties have agreed that in the current situation individual measures of the Steel Strategy 20-30 are regularly checked during the course of implementation,” said the company. To this end, a joint monthly monitoring of the situation regarding the implementation of the agreement reached had been agreed for the duration of the pandemic.
thyssenkrupp works council – short-time working in steel at the latest in May
The employees in the steel division of thyssenkrupp have to prepare for several months of short-time work due to the stoppage of important customers in the wake of the Corona crisis.
The management said it had to prepare for massive short-time work, said steel works council chief Tekin Nasikkol in a conference call with journalists on Wednesday. “At the moment we cannot quantify the volume and the plants involved.” The production stops at customers from the automotive industry made themselves felt. The works council is assuming that short-time working will probably occur no later than May for three months. “I will negotiate the exact agreement with the employer in the next few days.”
Around 27,000 employees work at thyssenkrupp-Steel Europe. According to NRW-IG-Metall boss Knut Giesler, the entire group employs around 40,000 people in North Rhine-Westphalia, making it almost systemically relevant here. Giesler and Nasikkol had agreed with the management on Wednesday night that the short-time work allowance would be increased to 80 percent.
“We will have to do short-time work in many locations over the next few weeks,” said HR Director Oliver Burkhard. This initially affects the production-related areas, but also the administration. “Everywhere we look diligently at which measures make sense. Even when we run out of work, we try to keep everyone in work so that we can get started after the crisis.”
Second course fireworks don’t last long
The price fireworks of thyssenkrupp shares burned off quickly on Wednesday. If the price was still up around 23 percent one and a half hours after the start of XETRA trading, profits subsequently fell to 0.99 percent at times. Ultimately, the share certificates were then 3.95 percent higher at 5.13 euros. The previous day, the price had shot up 26.4 percent.
thyssenkrupp has reached an agreement with IG Metall to cut 3,000 jobs in the steel sector. Analyst Christian Obst from Baader Bank admitted that the management implemented the plans; However, the group is investing part of the proceeds from the sale of the elevator business in the steel segment, which is characterized by excessively high capacities and customers in transition. The expert described the profit target for Steel Europe as “very ambitious” because the market conditions remained very challenging.
FRANKFURT (Dow Jones) / FRANKFURT (dpa-AFX broker) / Dsseldorf (Reuters)
Image sources: thyssenkrupp AG