Thyssenkrupp Steel, IG Metall Reach Consensus On Steel Realignment

(RTTNews) - thyssenkrupp Steel and the IG Metall union said, following negotiations, they have reached a restructuring collective agreement entitled, Steel Realignment. The agreement regulates three areas: adaptations to the production network and investments; staff reductions through efficiency measures; and workforce adjustments through spin-offs or sale of business activities.

The company said a reduction in production capacities to a future target shipping level of 8.7 to 9 mil-lion metric tons has been agreed through collective bargaining. The adaptations to the production network will be accompanied by a workforce reduction by about 1,600 employees, which is to be implemented by the end of the 2028/29 financial year. Also, personnel efficiency measures have been agreed with the goal of achieving a leaner and more efficient thyssenkrupp Steel. These measures should be implemented by the end of fiscal 2027/28, and will affect around 3,700 employees. In parallel, a process has been agreed to review and implement make-or-buy measures. Up to 4,000 employees are to be outsourced by the end of fiscal 2029/30.

Also, substantial personnel cost savings have been defined, and measures essentially comprise: cancellation of collectively agreed special payments to safeguard employment and holiday pay, reduction of the Christmas bonus; reduction in weekly working hours from 34 to 32.5 hours in the unionized sector; reduction in working hours for non-managerial, non-pay scale employees from 41 to 39 hours; cancellation of the granting of 6 free days for non-pay scale employees, with a buy-back option; workforce adjustment instruments; reduction in anniversary bonuses; and halving of on-call allowances.