PRESS RELEASE NO. 15/2019 Jörg Hofmann: “Thyssenkrupp’s Executive Board Must Present a Viable Plan”

Berlin – With the cancellation of the steel joint venture, Jörg Hofmann, President of IG Metall, sees increasing risks for employees. “When Thyssenkrupp announces that 6,000 jobs are to be cut and then the stock price skyrockets by 28 percent, employees must feel like pawns in the profit-driven interests of financial investors,” Hofmann said at an industry conference for the iron and steel industry on Wednesday in Berlin.

The union leader welcomed the fact that a collective bargaining agreement went into effect earlier this week, ensuring that jobs will be secured in the coming months while discussions take place regarding a future strategy for Thyssenkrupp’s steel division. However, Hofmann made it clear that employment must also be protected by collective bargaining agreements for the period thereafter. Hofmann said: “The Executive Board has a duty to present a viable plan for the future—not only for the steel division, but for all parts of the Thyssenkrupp Group. We will not allow structural problems to be addressed simply through workforce reductions. We need intelligent solutions.”

The iron and steel industry forms the foundation of Germany’s industrial value chains. Sectors such as machinery and vehicle manufacturing, which are well-positioned in national and international competition, depend on the iron and steel industry. “If the industry’s share is to remain high in the future, it is necessary to secure value chains in Germany and Europe,” said Hofmann. In this regard, the “National Industrial Strategy” proposed by Federal Minister of Economics Peter Altmaier, who attended the conference, points in the right direction.

However, policymakers must create the right framework conditions to ensure the success of the economy’s transformation and ecological transition. The union leader called on policymakers to resolutely push forward with the energy transition. This includes a consistent shift to renewable energy, grid expansion, and investments in modern gas-fired power plants as a necessary transitional technology. So far, the total electricity generated from renewable sources is not sufficient to cover steel production in Germany. Just to power steel production in Bremen with green electricity, an additional 800 wind turbines with a capacity of 3 MW would have to be built there. “Phasing out fossil fuels isn’t enough; now we must finally and consistently embark on a successful energy transition. This also means ensuring that energy-intensive industries have a future,” said the IG Metall chairman.