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Germany's largest industrial union, IG Metall, is raising serious concerns about the future of Thyssenkrupp Steel Europe, a subsidiary of the Thyssenkrupp conglomerate. The union fears a significant loss of jobs and financial instability following planned production cuts and the entry of Czech billionaire Daniel Křetínský as an investor.
Thyssenkrupp CEO Miguel López aims to reduce the steel subsidiary's production capacity by a fifth, a move expected to result in thousands of job cuts. IG Metall is also critical of López for pushing through Křetínský's investment despite opposition from employee representatives.
The union argues that Křetínský's 20% stake in the steel subsidiary will trigger the expiration of a crucial agreement that obligated Thyssenkrupp to financially support the struggling unit. This could leave the steel company vulnerable, particularly as it faces significant investment needs to decarbonise its production processes.
IG Metall estimates that planned job cuts and necessary investments could cost billions of euros. The union warns that without adequate financial support, the steel subsidiary could face a dire outcome.
Despite these concerns, Thyssenkrupp maintains its commitment to financing the subsidiary "for the time being," but emphasises the goal of the steel segment becoming financially self-sufficient.
The situation has escalated into a conflict between IG Metall and Thyssenkrupp's management. The union is particularly angered by the use of the supervisory board chairman's double voting rights to push through Křetínský's investment against the unanimous opposition of employee representatives.
The future of Thyssenkrupp Steel Europe remains uncertain, with the union and management at odds over the best course of action. The outcome of this dispute will have significant implications for the company, its employees, and the wider German steel industry.
