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Board of Thyssenkrupp Steel: "Recruit individuals for new positions" - Thyssenkrupp Steel Board's Focus: Facilitating Job Transitions
ThyssenKrupp, the German steel behemoth, is gearing up to negotiate a social plan for the potential loss of thousands of jobs. Personnel Director and Labor Director Dirk Schulte revealed in an interview with the West German General Newspaper (WAZ) that the primary focus is on aiding employees in finding fresh job opportunities.
Talks to kick off "real soon"
ThyssenKrupp aims to downsize its operations and eliminate about 11,000 positions over the next few years. These reductions intend to avoid dismissals based on operational factors, with negotiations with labor representatives slated to commence "real soon" and aiming for a wrap-up by summer, according to Schulte.
Schulte reiterated that the figure of 11,000 is firm. Compared to other steel producers, ThyssenKrupp's production costs have been deemed excessively high, leading to the necessity of slashing 5,000 jobs in both production and administrative roles. An additional 6,000 positions may be impacted through outsourcing or business sales. ThyssenKrupp currently employs around 26,300 individuals, with significant presences in North Rhine-Westphalia in cities like Duisburg, Bochum, Dortmund, and South Westphalia.
ThyssenKrupp
Job Losses
Dirk Schulte
WAZ
Germany
Steel Industry
The social plan being developed by ThyssenKrupp includes measures designed to support displaced employees, such as:
- Early Retirement Options: Employees will be offered attractive early retirement packages, intended to facilitate a graceful exit for older workers, thereby lessening the necessity of layoffs within the main workforce.
- Severance Packages: ThyssenKrupp will provide financial assistance in the form of severance pay for employees whose positions are eliminated, aiming to provide security during the transition to new jobs.
- Transfer Companies (Transfergesellschaften): The company is establishing transfer companies to lend a hand in finding new roles for employees outside ThyssenKrupp. These organizations assist in re-educating and placing workers in new positions, often partnering with labor unions and regional employment agencies.
The restructuring is anticipated to be completed by the end of 2030, ultimately reducing the workforce from close to 27,000 to around 16,000.
While these measures aim to minimize the impact of job losses, the IG Metall union has voiced strong dissent and is demanding assurances concerning the company's long-term prospects and protection for affected workers. The union is adamant about having a say in shaping the company's future strategy and preventing job cuts without a clear vision for the future of employees and sites.
- In response to the job losses at ThyssenKrupp, the company is establishing transfer companies to facilitate vocational training and education-and-self-development, helping employees find new positions within their vocational areas.
- To support career-development for employees affected by the job-closure strategy, ThyssenKrupp is offering financial assistance through severance packages and early retirement options, aiming to provide a smooth transition towards new opportunities while also managing business finances effectively.
