Germany-based steelmaker ThyssenKrupp has announced that it has reached a negotiated settlement on the conclusion of a collective agreement with Germany's industrial union of metalworkers IG Metall. The agreement will set collectively agreed parameters for the planned combination of the European steel activities of Thyssenkrupp and India-headquartered steel giant Tata Steel in a 50/50 joint venture (JV).
According to ThyssenKrupp, the settlement applies to all of its German steel sites. The collective agreement is to come into force with the start of the joint venture and apply for around eight years until September 30, 2026.
ThyssenKrupp stated that, within the scope of the agreement, the previously announced necessary reduction of up to 2,000 jobs will be carried out in a socially responsible way. The future of the majority of sites is assured until September 30, 2026. Within these site assurances, it will still be possible to make changes to individual lines and units. For specific operational units in Bochum, Eichen and Hüttenheim, ThyssenKrupp and IG Metall have agreed that a profitability analysis will be carried out at the end of 2020 to decide whether they should be continued; independently of this, these units will continue to operate until the end of 2021. In addition, investments will continue to be made in the German sites at the present level. The goal is to invest at least €400 million per year, among other things in the enhancement of production facilities.
In September this year, ThyssenKrupp announced the formation of a joint venture of its European steel activities with Tata Steel Europe. The aim of the joint venture is to create a leading European flat steel provider and position it as a quality and technology leader. The new company would have pro-forma sales of roughly €15 billion and employ around 48,000 people.