Thyssenkrupp Steel and IG Metall reach agreement in principle on restructuring

Thyssenkrupp’s steel division has announced that it has reached an agreement in principle with the IG Metall trade union on its planned restructuring.

Further negotiations are expected to result in a collective bargaining agreement by summer 2025. The basis for this is the industrial concept presented by the company’s management board at the end of 2024. It is intended to restore competitiveness to the steel company and make it fit for the future.

The stated goal of both parties is to avoid layoffs for operational reasons. Last year in November, Thyssenkrupp announced its intention to cut or outsource up to 11,000 jobs in its steel division.

In particular, after reaching an agreement, the issue of immediate closure of the plant in Kreuztal-Eichen (North Rhine-Westphalia) is not currently being considered. Instead, a location optimization concept is to be implemented in the short term. The decision on the continued operation of the plant is expected to be made no later than 2027/2028.

Reuters notes that reaching an agreement on wages is seen as an obstacle that must be overcome before Thyssenkrupp can sell an additional 30% stake in the steel business to Czech billionaire Daniel Kretinsky. The investor already owns a 20% stake through a holding company.

As GMK Center reported earlier, Thyssenkrupp is considering options to exit its materials trading business, Thyssenkrupp Materials Services GmbH, which could be valued at up to €2 billion. As reported in April, the company has already held preliminary talks with potential advisors on the future of the unit.