ThyssenKrupp guarantees accepted

DEAL: German unions have
held talks with Tata Steel
and ThyssenKrupp
DEAL: German unions have held talks with Tata Steel and ThyssenKrupp

GERMAN workers approved on Monday (5) their union’s results in talks with India’s Tata Steel and ThyssenKrupp’s steel divi­sion ahead of a planned merger – but the vote does not remove all obstacles to the tie-up.  

Some 92.2 per cent of IG Metall members polled agreed to executives’ guarantee not to slash jobs or close major sites until at least September 2026 if the fusion succeeds, the union said in a statement.  

“We managed to clear up important points in favour of the employees,” said Detlef Wetzel, who sits on ThyssenK­rupp Steel’s supervisory board as a worker representative.  

Nevertheless, workers’ ac­ceptance of the guarantees does not mean the deal can immediately go ahead.  

“Only the supervisory board can decide that, and it’s far from certain whether worker representatives will agree,” Wetzel continued.  

IG Metall has commissioned expert studies on whether the merged companies would be economically viable, it said.  

ThyssenKrupp and Tata’s tie-up would create a firm with combined annual sales of around €15 billion and 48,000 employees, second only to Ar­celorMittal in Europe.  

The firms say a fusion is necessary to combat chronic overcapacity in an industry roiled by a flood of subsidised Chinese steel.  

While the merger will allow for economies of scale and other savings, the firms warned in December it will al­so lead to 4,000 job cuts that will be shared roughly evenly between the two groups.  

Three of ThyssenKrupp’s sites in Germany’s historic in­dustrial heartland of North Rhine-Westphalia are only guaranteed to remain open until 2021 under the deal.  

But if the merger is com­pleted, ThyssenKrupp – a sprawling group that also makes products ranging from car parts to elevators and sub­marines – has also said it will invest “at least” €400 million per year in its German steel works and retain workers’  

voting rights on the supervi-sory board.