Steel glowing red travels through the rolling mill at the Thyssenkrupp steel plant on April 9, 2025 in Duisburg, Germany.
Sean Gallup | Getty Images News | Getty Images
Thyssenkrupp and trade union IG Metall on Saturday said they had agreed on reduced working hours, lower bonus payments and site closures as part of a push to revamp Germany’s largest steelmaker.
The accord with steel workers marks a major step in Thyssenkrupp’s restructuring, under which the former German industrial icon is planning to turn into a holding company, and comes after renewed tension between management and labour representatives.
Implementation of the new collective bargaining agreement, which runs until September 30, 2030, must be approved by IG Metall members at Thyssenkrupp’s steel unit TKSE and is pending an agreement on the division’s future financing, they said.
The agreement follows Thyssenkrupp’s announcement that up to 11,000 jobs at the steel unit, TKSE, had to be cut or outsourced and that annual production capacity would be lowered to 8.7-9.0 million tons from 11.5 million tons.
“We went to the pain threshold and only made concessions where it was really necessary in order to secure jobs and locations,” said Tekin Nasikkol, head of Thyssenkrupp’s works council and member of the group’s supervisory board.
“We have now created the conditions for the company to emerge from the difficult situation out of its own strength,” Nasikkol said in a statement.
Thyssenkrupp had wanted to reach a deal regarding the restructuring by summer and both sides aim to finalise the current agreement by the end of September.
Reaching a wage deal has been seen as a key hurdle to be cleared before Thyssenkrupp can sell an additional 30% stake in TKSE to Czech billionaire Daniel Kretinsky, as planned. The investor already owns a 20% stake via a holding company.