Germany Business Weekly: Thyssenkrupp Steel Salary Cuts by 8%, 5,300 Employees Face Layoffs

Germany Business Weekly reported on July 12 that Thyssenkrupp Steel Europe (TKSE) has reached a collective agreement with the German Metalworkers' Union (IG Metall), confirming that average employee salaries will decrease by 8% and plans to cut 5,300 jobs. According to the agreement, employees' weekly working hours will be reduced from the current 33-34 hours to 32.5 hours, annual anniversary bonuses will be reduced from an additional month's salary to 1,000 euros, and on-call allowances will be halved. These measures are expected to save the company tens of millions of euros in personnel costs annually.

This layoff plan includes 1,600 production positions lost due to factory closures, as well as 3,700 positions to be cut across the group by 2028. The company also confirmed that steel annual capacity will be reduced from 11.5 million tons to 8.7-9 million tons. The Bochum plant will close in 2028, while the Kreuztal-Eichen plant is temporarily spared from closure but must implement the "location optimization concept" to ensure economic operation. Currently, the Thyssenkrupp Steel division has about 26,300 employees, and this restructuring is part of its overall plan to cut 11,000 jobs.

Thyssenkrupp board member Mary Jaroni called the agreement an "important milestone for the future viability of Thyssenkrupp Steel," while IG Metall regional manager Knut Gisler described it as a "feasible compromise with painful elements for both sides." He emphasized that the agreement successfully prevented forced layoffs due to operational reasons and ensured factory location and investment commitments. The chairman of the Steel Workers' Union, Tayfun Nacioglu, stated: "We have reached our pain threshold; we cannot long compensate for management mistakes with employee contributions." The agreement will last until September 30, 2030, and is pending approval by union members and financing confirmation from the parent company.

Original: https://www.toutiao.com/article/1837451582125259/

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