FRANKFURT, Dec 3 (Reuters) - Germany's most powerful union IG Metall on Wednesday said that compulsory layoffs would remain a last resort at conglomerate Thyssenkrupp, adding an agreement with
Thyssenkrupp's Restructuring: Layoffs as a Last Resort
FRANKFURT, Dec 3 (Reuters) - Germany's most powerful union IG Metall on Wednesday said that compulsory layoffs would remain a last resort at conglomerate Thyssenkrupp, adding an agreement with management on the matter had been extended into 2028.
Thyssenkrupp earlier this year announced it would turn into a holding and divest stakes in all of its businesses via spin-offs, divestments or listings to simplify its structure and raise returns.
IG Metall said as a result an agreement -- whereby any layoffs would be made in a socially responsible manner while the focus was primarily on cutting material costs -- was extended until September 30, 2028.
"The extension of the basic agreement is an important success in uncertain times," said Juergen Kerner, deputy chairman of Thyssenkrupp's supervisory board and deputy head of IG Metall.
"It creates security for employees and guarantees co-determination in the upcoming restructuring of the group. Especially in view of the upcoming restructuring, it is crucial that employees are involved on an equal footing and that their interests are fairly taken into account."
Thyssenkrupp is currently in talks to sell its steel division to India's Jindal Steel International and is also cutting up to 11,000 jobs at the unit, either by reducing or outsourcing them.
(Reporting by Christoph SteitzEditing by Ludwig Burger)
