On Tuesday, September 8, German steelmaker ThyssenKrupp AG said that the board of its Nirosta stainless unit has reached an accord with labor representatives to cut 300 jobs and reduce the number of weekly shifts as it steps up cost-cutting efforts amid mounting pressure from credit agencies.
According to the statement released by the company, the agreement with the General Works Council of ThyssenKrupp Nirosta AG in Krefeld, Germany, which is valid until December 31, 2012, includes various flexibilization measures to strengthen the stainless steel producer's competitiveness and at the same time take account of demographic changes. The agreement affects production sites in Krefeld, Bochum, Duesseldorf-Benrath and Dillenburg as well as the service center in Wilnsdorf, representing a combined workforce of around 3,900. In total, the Nirosta group employs some 4,500 people.
The company said, "The jobs will be reduced through partial retirements, severance programs and natural turnover. There will be no compulsory redundancies."
"To adapt to fluctuating demand, the number of weekly production shifts will be reduced to an average of 18 from 21 beginning in January 2010. Shifts may vary from 15 to 21 per week, with the differences being offset by working time accounts," the company added.
ThyssenKrupp has already announced thousands of job cuts since last fall as it aims to generate more than €1 billion in savings from its cost-cutting and efficiency programs by the end of fiscal year 2011.