- The intensifying predicament at Thyssenkrupp's steel division sees multiple board members departing.
At Thyssenkrupp, the disagreement over the steel division's transformation intensifies: Three steel leaders and four supervisory board members have stepped down, including chairman Sigmar Gabriel and steel chief Bernhard Osburg. Gabriel declared in Duisburg after a steel division supervisory board meeting that the mandates would end immediately following the meeting. The supervisors aimed to relinquish their positions promptly. Just yesterday, reports emerged that the three executives had been presented with termination agreements.
Gabriel alleges serious misconduct by Thyssenkrupp CEO
Gabriel primarily assigns responsibility for the resignations to Thyssenkrupp CEO Miguel López. He embarked on a "groundbreaking initiative" against the steel board, which he views as a "severe breach of confidence." "It appears that the goal was to force the board to step down." López publicly accused the steel board of misrepresenting plans for restructuring three weeks ago. He demanded that the steel board present a long-term sustainable business plan for the steel division's realignment.
The root cause stems from a contentious dispute over the division's financial provisions during the planned spin-off and restructuring by the parent company. The parent company considers the current plans of the steel board insufficiently ambitious.
The steel division has long struggled with economic instability and inexpensive imports. As a result, it needs to decrease capacity and associated personnel. The consequences of the board and supervisory board reshuffle on the division's employees' future remain uncertain. The supervisory board was aiming to approve a financing plan for the next two years, but this did not materialize.
Thyssenkrupp's steel division is Germany's largest steel manufacturer, employing 27,000 people, with 13,000 based in Duisburg. The works council anticipates a potential "halving of the plant" and the loss of thousands of jobs during restructuring.
Gabriel also criticizes chair Russwurm and supervisory board member
Gabriel praised the initial measures adopted by the steel division supervisory board as a "promising path towards the steel company's restructuring." The proposed strategies included the sale of the Krupp Mannesmann steelworks, in which Thyssenkrupp Steel holds a 50% stake.
"About three weeks later, we regret to find that there are significant differences between Thyssenkrupp AG's CEO and his supervisory board, especially with great support from Mr. Russwurm," Gabriel continued. Russwurm serves as chairman of the parent company Thyssenkrupp's supervisory board and also holds the presidency of the Federation of German Industries.
Gabriel departed with parting words: "I wish the employees above all to receive such outstanding leaders as they are now losing, and better owners than they currently possess."
IG Metall: "We are dealing with a mess"
IG Metall expressed disapproval of the developments. Second Chairman Jürgen Kerner, also a member of the supervisory board at the parent company, said, "The dismissal of the three experienced steel board members sets us back miles." These personnel decisions divert attention away from addressing the genuine issues, he claimed. "A year after Mr. Lopez took office as CEO, we are left with a mess."
Criticism also emerged from politics. "By essentially dismissing the steel board, Mr. Lopez is not solving a single problem," explained SPD state chairwoman in NRW, Sarah Philipp. Instead, she contended, he has eroded trust in politics, the workforce, and co-determination. "His calculated attack on the employee side is significantly exacerbating the company's crisis."
I'm not going to sugarcoat it: Gabriel's remarks towards López and the CEO's actions suggest a deep-seated rift within Thyssenkrupp, potentially impacting the future of the steel division's employees.
Despite Gabriel's initial praise for the steel division's proposed strategies, the disagreement between the CEO and the supervisory board over the steel division's transformation has now led to significant resignations, which I'm not going to lie, is causing uncertainty among the division's employees.
