Thyssenkrupp, Germany’s largest steelmaker, has announced plans to cut 11,000 jobs, roughly 40 percent of its workforce within its steel division. This shock announcement came on November 27, 2024, and has left many steelworkers across the Rhine and Ruhr regions, including those at the company’s operations in Siegerland and Sauerland, reeling.
The news quaked through the industry as Thyssenkrupp aims to implement what it describes as a "comprehensive industrial future concept." This austerity initiative is geared toward securing profits amid mounting pressures within the global trade and economic landscapes. Among the cuts announced, 5,000 jobs are expected to vanish from steelworks and factories, alongside notable administrative streamlining. Notably, the processing facility located at Kreuztal-Eichen, employing nearly 600 individuals, is slated for closure.
Particularly affected is the steelworks situated north of Duisburg, currently employing almost 13,000 workers. Thyssenkrupp plans to reduce its operations drastically, with the expectation of another 6,000 positions eliminated via outsourcing and sales to external service providers. This has significant ramifications for the steelworkers at the Hüttenwerke Krupp Mannesmann (HKM) facility, where Thyssenkrupp holds the majority share.
Thyssenkrupp's management board justified the cuts by underscoring the need to bring personnel costs to levels deemed "competitive." Around 16,000 employees who remain at the company could face wage reductions of 10 percent, which would be enforced through cuts to special payments and bonuses. Worryingly, newly hired employees could find themselves on lower pay scales, signaling troubling trends for labor rights.
Chief Human Resources Officer Oliver Burkhard, who previously held significant roles within the IG Metall union before joining Thyssenkrupp's executive board, announced he would step down as of January 31, 2025. His resignation raises eyebrows, as he has chosen to focus on his other role as CEO of Thyssenkrupp Marine Systems, which is bolstered by soaring demand due to military contracts.
Knut Giesler, the new chairman of IG Metall, quickly pledged to support the proposed cutbacks, stating negotiations might proceed provided there are firm commitments from Thyssenkrupp to avoid layoffs and closures. Giesler’s bullish stance aligns with the union's historical approach, which often prioritizes pacts over the jobs actually lost.
Echoing these sentiments, Jürgen Kerner, deputy chairman of IG Metall, discerned the need for clarity around job security, emphasizing the exclusion of shutdowns and redundancies. Their collective bargaining, referred to as the "Duisburg Declaration," acknowledges the steel sector's vulnerabilities but holds to the notion of no compulsory redundancies or plant closures.
Despite the dire backdrop, Thyssenkrupp managed to announce reductions to its production capacity from 11.5 million tonnes to about 8.7 to 9 million tonnes annually, showcasing flexibility amid adversity. The company plans to utilize DRI (Direct Reduction Iron) technology powered by green hydrogen to minimize CO2 emissions, and it has begun construction on the first blast furnace with the help of significant state funding—€2 billion from the German federal government and North Rhine-Westphalia.
IG Metall’s rhetoric, describing the restructuring as necessary, seems to go hand-in-hand with the company’s agenda, leading to criticisms about complacency. Long-standing support for elements of job loss and closures has raised concerns among the workforce, who perceive their union as increasingly aligned with management objectives rather than being solid advocates for workers’ rights.
Thyssenkrupp's job cuts are not merely localized events but represent larger issues facing the global steel industry, particularly the impact of economic ebbs and flows tied to the automotive sector—the primary consumer of steel. Amid intensifying financial strains and challenges posed by rising input costs, including tariffs introduced by the incoming U.S. leadership, stakeholders find themselves engaged in what threatens to become more than just corporate restructuring.
Recently, economic reforms framed as protective measures for domestic industries could lead to more intense competition within the sector. These actions are characterized as responses to international pressures but often at the direct expense of the workforce.
The prevailing sentiment among steelworkers and union members is one of disillusionment, aggravated by the historical circumstances surrounding past negotiations where similar supportive commitments to job security did not pan out. Effective action against these job cuts will almost certainly require solidarity among workers across sectors, particularly as other industries also face significant cutbacks.
On the economic front, the malaise afflicting Thyssenkrupp epitomizes the broader challenges confronting Europe’s manufacturing base—a clash between the need for profitability and the equally pressing need to protect jobs and maintain community livelihoods. Workers are not just fighting for employment; they are grappling urgently with the threat posed to their future amid capitalist exigencies.
The steelworkers at Thyssenkrupp and HKM stand at the brink, and it is increasingly clear they must detach themselves from historical trappings of union appeasement to effectively address their grim reality. This moment calls for newly energized, worker-led action committees free from the parameters dictated by union leadership, challenging not only the job losses but the fundamental framework of labor relations.
Organizing protests, drawing lines against job losses, and weaving connections with international forces could reshape the narrative. Workers must realize their struggle is interlinked with economic dynamics far beyond Thyssenkrupp’s gates, and awareness of their collective power is pivotal.
