thyssenkrupp would contribute thyssenkrupp Steel Europe with all sites and employees to the new company. It is also intended to transfer thyssenkrupp MillServices & Systems GmbH, currently part of the Materials Services business area, to the joint venture.
But even with the joint venture the steel business will be unable to avoid job cuts. In the joint venture as a whole it is expected that up to 2,000 administrative jobs and possibly up to 2,000 jobs in production will have to be cut in the coming years. These reductions would be shared roughly evenly between thyssenkrupp and Tata. So overall up to 2,000 jobs at thyssenkrupp could be affected.
In the joint working group set up by the thyssenkrupp Supervisory Board, thyssenkrupp and trade union IG Metall have reached a negotiated settlement on the conclusion of a collective agreement. It will set collectively agreed parameters for the planned combination of the European steel activities of thyssenkrupp and Tata Steel Europe in a 50/50 joint venture. The settlement applies to all of thyssenkrupp’s German steel sites.
This agreement assures continuation of employment until September 30, 2026. That means that the previously announced necessary reduction of up to 2,000 jobs will be carried out as in the past in a socially responsible way.
Far-reaching assurances for site continuation have also been given. 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 we 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.
The existing apprentice and further training capacities will be retained and thus form a cornerstone for the success of the joint venture. At present roughly 1,500 young people are being trained in the steel business.