The steel sector underwent changes. - IG Metall remains sharply critical of Thyssenkrupp's management board.
Following the decision to sell a share of Thyssenkrupp's steel division, the IG Metall union has leveled serious accusations against the company's leadership. According to a flyer published by the union on Wednesday, "the board of directors is prioritizing their separation from the steel business at the expense of the workforce and the public."
At a meeting last week, the Thyssenkrupp supervisory board approved the sale of a stake to the energy company EPCG owned by billionaire Daniel Kretinsky, despite opposition from employee representatives. The steel division of the conglomerate is Germany's largest steel producer, employing 27,000 people.
IG Metall: "The AG is distancing itself from the steel division"
The deal between Kretinsky and Thyssenkrupp Steel Europe, according to IG Metall, would void the collective bargaining and profit transfer agreement (BGAV) between the AG and Thyssenkrupp Steel. In simple terms, "This means the AG is effectively abandoning the steel division." The union predicts costs of up to four billion euros for the division's proposed independence. "The expenses for avoiding mass layoffs in a restructuring of Thyssenkrupp Steel Europe alone could reach at least one billion euros," says IG Metall. Additionally, there would be further costs for equipping the steel division to compete with its rivals, totaling an additional three billion euros. The AG can only afford these costs. "Ultimately, they've dug their own grave."
The holding company issued a statement on Wednesday, saying the 20% stake acquisition by EPCG would not influence the financial situation of the steel business. Their goal is for the steel segment, which has been suffering losses for years, to generate income from its own operational resources and enhance its position in the capital market. "The alignment of Thyssenkrupp Steel and the business plan currently being developed by the steel management serves as the economic foundation for this." The steel management is attempting to adapt to the challenging market situation and fundamental changes in the European steel industry.
"Compulsory dismissals have never occurred in the steel industry," said a Thyssenkrupp spokesperson. "Our intention is to preserve our current tariff agreements and continue to avoid layoffs. However, a successful and profitable company is necessary to provide stable and secure jobs sometime in the future."
However, the union is concerned that the steel division will continue to be financed by Thyssenkrupp after the EPCG investment. "When a new shareholder enters, the BGAV between the AG and the steel division will end automatically by law," Thyssenkrupp stated. The steel business would be temporarily financed by Thyssenkrupp during the period of a 50/50 joint venture. "An independent financing with contributions from both partners would be the aim to achieve this," the spokesperson said.
IG Metall criticized the management of the AG regarding the steel division, citing "cognitive incompetence." According to Jürgen Kerner, the union's second chairperson who is also a supervisory board member, "it seems the management's goal is to dismantle the conglomerate in favor of shareholders."
Read also:
- Tough return to normality in snow and ice
- Fewer unauthorized entries: Domino effect through controls
- Trial against BND employee from mid-December
- Xhaka leads Leverkusen to triumph in cup tournament, scoring two goals.
- Despite the opposition from employee representatives, the Thyssenkrupp supervisory board in North Rhine-Westphalia approved the sale of a stake in its steel division to the energy company EPCG, owned by billionaire Daniel Kretinsky, which is based in Germany.
- The steel division of Thyssenkrupp, located in Duisburg, is the largest steel producer in Germany, employing 27,000 people within the country's steel industry.
- IG Metall, the trade union representing the employees in the steel sector, strongly criticized the management board's decision to sell a share of the steel division and prioritize separation from the steel business over the workforce's interests.
- The union claims that the sale of the stake and the subsequent proposed independence of the steel division would void the collective bargaining and profit transfer agreement (BGAV) between IG Metall and Thyssenkrupp Steel,costing the division up to four billion euros.
- According to the holding company, the 20% stake acquisition by EPCG will not influence the financial situation of the steel business, aiming for the steel segment to generate income from its operational resources and improve its position in the capital market.
- Thyssenkrupp Steel's management is making efforts to adapt to the challenging market environment and fundamental changes in the European steel industry, with the goal of preserving tariff agreements and avoiding layoffs in the steel division, which has been experiencing losses for years.
Source:
