Germany - Deal concluded for the planned steel merger - December 31, 2017

The Thyssenkrupp management has offered workers commitments on jobs and investments to get union backing for its deal with Tata Steel to merge their European steel operations. Both groups agreed in September in a memorandum to merge their operations, creating the continent’s second largest steelmaker with revenues of 15 billion euro. Workers at Thyssenkrupp fiercely opposed the deal, as they were concerned more steel jobs would get lost on top of the 4,000 already announced. IG Metall demanded 10-year guarantees for jobs, plants and investments and set a deadline for an agreement. The union came to a deal on 21 December 2017 that secures steel plants and jobs, a big step towards the planned merger. The agreement, which still needs to be approved by the members of IG Metall, foresees no forced layoffs or major site closures until 30 September 2026; this result comes close to the union’s demands.

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