Trade union sets deadline in talks over Thyssenkrupp-Tata Steel merger
Duesseldorf: IG Metall has given Thyssenkrupp AG until 22 December to agree to job, plant and investment guarantees for a chance of winning the powerful German trade union’s backing of the planned European steel merger with Tata Steel Ltd.
“We are putting an end to this process of playing for time. We will negotiate until 22 December and that will be the end,” labour representative Detlef Wetzel, who is also deputy supervisory board chairman of Thyssenkrupp Steel Europe, told Reuters on Monday. “If there is a negotiation outcome by then we will let IG Metall members vote on it.”
The deadline puts further pressure on Thyssenkrupp chief executive Heinrich Hiesinger, whose plan to merge the group’s European steel business with that of Tata Steel is seen as the centrepiece of his efforts to turn around the company.
Hiesinger hopes to reach a final deal with Tata Steel in early 2018 but that depends on whether he can get it through Thyssenkrupp’s supervisory board, where labour representatives have called for job and plant guarantees of 10 years.
Labour representatives 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. Reuters