Steeltec AG Successfully Concludes Consultation Process with Reduced Workforce Reductions
Steeltec AG, a significant part of the Swiss Steel Group located in Switzerland, has officially concluded its consultation process regarding necessary personnel reductions at its Emmenbrücke plant. The consultation, which began in mid-November 2024, was conducted with transparency and involved close cooperation between Steeltec, the employee committee, social partners, and relevant authorities. The goal was to explore all potential measures to address the plant's economic challenges and secure a sustainable future for the facility.
Initial Redundancies Planned, Now Reduced
The original announcement in November 2024 stated that Steeltec would need to reduce 130 positions at the Emmenbrücke site. At that time, it was estimated that around 80 employees would face redundancy. However, through constructive and ongoing dialogue with the employee committee and other stakeholders, the final number of layoffs has been significantly reduced. By utilizing natural attrition and making adjustments to the company’s organizational structure, the redundancies will now affect a maximum of 50 employees, down from the initial estimate.
This positive shift in the number of layoffs was achieved by working together with various stakeholders to find viable solutions that would not compromise the plant’s operational efficiency. The existing social plan, which aims to support affected employees during the transition, will still be applicable.
Economic Challenges and Government Support Considerations
During the consultation process, Steeltec also discussed the broader economic challenges faced by the steel industry in Switzerland. One of the key topics was the political decision regarding temporary reductions in grid charges for the steel and aluminum industries. This reduction in grid charges is intended to support the steel sector's competitiveness, especially during times of economic uncertainty.
Although the Swiss National Council has committed to supporting the steel and aluminum industries through this measure, Steeltec acknowledges that it is still too early to fully assess the long-term impact of these changes. The company will continue to monitor developments closely and adapt its strategy accordingly.
Strategic Focus on Long-Term Viability
The restructuring measures, including the reduced workforce, are set to be implemented in the first quarter of 2025. Steeltec is optimistic that these adjustments will help the Emmenbrücke site become more efficient and adaptable, enabling it to meet future targets and strengthen its position in the global steel industry.
Steeltec is committed to securing the long-term sustainability of its operations, and the conclusion of this consultation process marks a significant step toward achieving that objective. With the reduced number of layoffs and a clear focus on strategic adjustments, Steeltec aims to navigate current challenges while ensuring a strong future for the plant and its workforce.
