In a climate of uncertainty, workers at Thyssenkrupp's steel division are expressing their concerns over the strategic direction of the company, particularly in light of co-owner Daniel Kretinsky's recent actions. Knut Giesler, a prominent labor representative and head of the IG Metall union in North Rhine-Westphalia, voiced the frustrations of the workforce regarding Kretinsky's lack of communication about his plans for the steel unit. The absence of clarity from the billionaire investor has raised alarms about the potential for effective collaboration in the future.
Kretinsky acquired a 20% stake in Thyssenkrupp Steel Europe earlier this year, with ongoing discussions about purchasing an additional 30%. However, doubts linger about the viability of a joint venture, especially given the division's struggles with high operational costs and fierce competition from cheap Asian imports. The situation has been exacerbated by Thyssenkrupp's recent announcement to cut 11,000 jobs, which amounts to approximately 40% of its workforce, through various means such as divestments and outsourcing.
Giesler emphasized the need for transparency regarding Kretinsky's objectives, stating, "I am very open with regard to the question of investors, but I am opposed if it is unclear what the objective is." His comments reflect a broader skepticism among steelworkers about Kretinsky's commitment to the long-term health of the business. Three months ago, the union sent Kretinsky a detailed questionnaire seeking insight into his plans, but the lack of response has only fueled doubts about the potential benefits of a joint venture.
The historical roots of Thyssenkrupp's steelmaking operations date back to the early 1800s, making it a cornerstone of the German industrial landscape. However, the current economic challenges faced by the steel division are significant. In addition to the threat posed by low-cost imports, the company is grappling with rising production costs that have put pressure on profit margins. Giesler's concerns underscore the urgency for a clear strategy that addresses these challenges while safeguarding jobs.
Kretinsky has framed his partnership with Thyssenkrupp as a merger of strengths, combining the energy expertise of his holding company, EPCG, with the steelmaker's operational needs. He believes this collaboration could help navigate the energy-intensive nature of steel production more effectively. However, workers remain wary, questioning whether Kretinsky will take on the financial risks associated with a 50:50 joint venture.
As discussions between Thyssenkrupp and Kretinsky continue, the focus is now shifting toward a mid-term business plan that is expected to be unveiled in early 2025. This plan is critical for shaping the future of the steel division and will likely determine the trajectory of Kretinsky's involvement. The anticipation surrounding this plan reflects the high stakes involved for both the company and its workforce, who are eager for reassurance about their jobs and the division's future.
The ongoing dialogue between labor representatives and management will be pivotal in addressing the concerns of the workforce. As the steel industry faces unprecedented challenges, the need for a cohesive strategy that prioritizes both operational viability and employee welfare has never been more pressing. Workers at Thyssenkrupp are looking for answers, hoping that clarity will pave the way for a more stable and prosperous future for the steel division.
