Thyssenkrupp under pressure: 11,000 jobs at risk and economic turnaround required!

Thyssenkrupp under pressure: 11,000 jobs at risk and economic turnaround required!

Next Wednesday, the state parliament of North Rhine-Westphalia will hold an important meeting at 10:00 a.m. that will address the tense economic situation in the region and the planned job cuts at Thyssenkrupp. In this context, the FDP opposition is demanding that the black-green state government initiate an economic turnaround, as economic warning signs could indicate a critical development, such as sueddeutsche.de reported. The SPD also plans to talk in the current hour about the reduction of 11,000 jobs at Thyssenkrupp Steel and is committed to ensuring that the state government protects the co-determination rights of employees.

Thyssenkrupp, a major employer in the region with 96,000 employees worldwide, is facing major changes. The company plans to sell several divisions, including steel trading, and may plan further job cuts. The strategic realignment envisages transferring the company into a holding company, whereby business areas such as automotive supply, steel trading, naval shipbuilding and plant engineering are to be organized as independent companies. Half of the steel business, which employs over 16,000 people and generates annual sales of 12.1 billion euros, could be sold, while the supervisory board is due to decide on the details of the concept by the end of September tagesschau.de reported.

Economic forecasts and political demands

The RWI - Leibniz Institute for Economic Research only predicts an increase in economic output in North Rhine-Westphalia of 0.1 percent for 2023 and economic growth of 1.5 percent for 2026. These figures focus on the need for political interventions. In view of the 700 million euros in state funds that have already been allocated to promote more climate-friendly steel production, the SPD is calling on the state government to continue to advocate for employees' co-determination rights.

Another issue that is on the state parliament's agenda is a change in the law that would reinstate the old local electoral law. This comes as a result of a ruling by the State Constitutional Court, which found that the previous amendment from July 2024 violated the right of smaller parties to equal opportunities.

Insecurity among employees

There is great uncertainty among Thyssenkrupp employees. Works council chairman Tekin Nasikkol has announced that negotiations are currently underway to eliminate and outsource 11,000 of 26,000 jobs in the steel business. At the same time, the headquarters in Essen could be reduced from 500 to just 100 employees. There is also talk of closing or selling part of the automotive supplier division, which puts additional pressure on employees.

The situation remains tense, and the upcoming session of the North Rhine-Westphalia state parliament could bring about decisive political decisions to support the affected companies and their employees.