ThyssenKrupp Steel Europe Reaches Agreement With Employees in Spain
In connection with the implementation of the optimization program “Best-in-Class Reloaded”, ThyssenKrupp Steel Europe has now reached agreement with the negotiating committee at ThyssenKrupp Galmed on a social plan for the entire workforce. The agreement provides for the termination of all employment contracts of the subsidiary and the closure of the facility in the Spanish city of Sagunto in Valencia.
The extremely difficult market environment in the steel industry requires extensive cost reductions at ThyssenKrupp Steel Europe. This also involves the closure of other plants, including in Germany. Demand for flat steel products in Spain has dropped by around 40% since 2007. This has led to a sustained and serious reduction in the capacity utilization at the plant in Sagunto.
The negotiations, with the participation of the works council of ThyssenKrupp Galmed and its advisors from the trade union CCOO (Confederación Sindical de Comisiones Obreras) as well as the European Works Council, resulted in a provisional agreement last week. This has now been presented to all employees at a workforce meeting and confirmed by a large majority.
The agreement gives employees the opportunity to move to different jobs in the group. In addition, employees have the option of taking up early retirement offers. Employees who are unable or unwilling to take up these offers will receive redundancy payments well in excess of legal requirements. Implementation of these measures is to commence in the 4th quarter of this year.
“ThyssenKrupp Steel Europe thanks the negotiating committee and all employees for their help in reaching this mutually agreed solution. In our view this is a workable agreement which takes account of the difficult economic situation in this region,” said Thomas Schlenz, chief human resources officer at ThyssenKrupp Steel Europe.
The ThyssenKrupp Galmed hot dip galvanizing line supplies coated material to car manufacturers and other industrial customers in southern Europe and elsewhere. The plant employs 165 people.