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ThyssenKrupp Steel Initiates Social Compensation Plan
05/11/2009 - In response to the dramatic slump in the world economy, ThyssenKrupp Steel initiates plans to cut some 1800 to 2000 regular jobs by September 30, 2010.
ThyssenKrupp Steel has initiated plans to cut some 1800 to 2000 regular jobs by September 30, 2010.
The company said the reduction, which has been made necessary by the dramatic slump of the world economy, is part of its “Program 20/10,” which targets cost cuts of more than 300 million euros at ThyssenKrupp Steel AG and a further 100 million euros at its subsidiaries. The program comprises ten “20/10” initiatives that are supposed to produce full effect as from fiscal year 2010/2011.
“We stick to the clearly defined objective to avoid redundancies for operational reasons, and the same goes for plant shutdowns in this period”, said Dieter Kroll, HR director on ThyssenKrupp Steel AG’s executive board.
ThyssenKrupp Steel is planning to utilize a range of measures to achieve the reductions, including voluntary departure with severance payments, internal placement of employees, and retirements. The company is also considering offering part-time work (28 hours per week) to more than 80 apprentices over two years.
The company’s announced job reductions follow cost-cutting schemes including a one-off saving potential for administrative and material costs in which employees had been requested to bring their overtime accounts into balance and take remaining vacation days. In January, the company introduced short-time work, which affected more than 15,000 employees. In March, the company shut down Blast Furnace No. 9 due to the significant decline in incoming orders.
Despite the cuts, the company has agreed to continue its “ProZukunft“ program, which provides placement for some 1000 finished apprentices by the year 2013, 600 of whom have already been retained so far.
The company’s announced job reductions follow cost-cutting schemes including a one-off saving potential for administrative and material costs in which employees had been requested to bring their overtime accounts into balance and take remaining vacation days. In January, the company introduced short-time work, which affected more than 15,000 employees. In March, the company shut down Blast Furnace No. 9 due to the significant decline in incoming orders.
Despite the cuts, the company has agreed to continue its “ProZukunft“ program, which provides placement for some 1000 finished apprentices by the year 2013, 600 of whom have already been retained so far.
“We stick to all contracts and shall continue to offer training on the attained high level,” explained Kroll. After this summer, 329 young people will begin apprenticeships at ThyssenKrupp Steel.
