Thyssenkrupp ready to make workers offer for Tata Steel deal: Bild am Sonntag

Local Vanity Numbers:

BERLIN (Reuters) – Thyssenkrupp (TKAG.DE) is prepared to offer workers commitments on jobs and investments to get union backing for its deal with Tata Steel (TISC.NS) to merge their European steel operations, German weekly Bild am Sonntag reported, citing an internal memo.

A logo of ThyssenKrupp AG is pictured outside the ThyssenKrupp headquarters in Essen, November 23, 2017. REUTERS/Thilo Schmuelgen

“We are prepared to make wide-ranging commitments on the topics that are most important to our employees,” the paper quoted Thyssenkrupp personnel chief Oliver Burkhard as telling managers in the memo.

“That concerns for instance securing sites, future investments and job security. With our proposal, we want to secure jobs at the future joint venture into the next decade,” he said.

Thyssenkrupp declined to comment on the report.

German labor union IG Metall had given Thyssenkrupp until Dec. 22 to agree guarantees on jobs, plants and investments, putting further pressure on Chief Executive Heinrich Hiesinger, who has said he wants the approval of shop stewards for the merger plan.

Hiesinger hopes to reach a final deal with Tata Steel in early 2018 but that depends on whether he can get it passed by Thyssenkrupp’s supervisory board, where workers’ representatives have called for jobs and plants to be secure for 10 years.

Labor leaders hold half of the 20 seats on Thyssenkrupp’s supervisory board, and while a deal can still be pushed through without their consent, their approval could significantly smooth the transaction.

Reporting by Maria Sheahan; Additional reporting by Tom Kaeckenhoff; Editing by Andrew Bolton

Our Standards:The Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published. Required fields are marked *