Thyssenkrupp Reaches Settlement With Employees on Tata Merger
December 22 2017 - 2:30AM
Dow Jones News
By Alberto Delclaux
Thyssenkrupp AG (TKA.XE) said late Thursday that it reached a
collective agreement with trade union IG Metall on the planned
merger of its European steel business with Tata Steel Ltd.
(500470.BY), applying to all of Thyssenkrupp's German steel
sites.
The settlement "assures the continuation of employment until
Sept. 30, 2026," the German company said, adding that the 2,000 job
cuts that it announced previously will be carried out in a manner
that is socially responsible.
Activity in the majority of sites will also be assured until
Sept. 30, 2026, Thyssenkrupp said, although it will review three
plants in 2020 to decide whether they will keep operating.
Thyssenkrupp will hold an interest in the future joint venture
for at least six years, but said that it doesn't rule out an
initial public offering in the period.
The collective agreement, which IG Metall's
collective-bargaining committee recommends their members accept,
will be put to a vote in January.
Thyssenkrupp also said that it aims to sign the merger agreement
in early 2018 and expects to close the deal by the end of 2018,
once it receives regulatory approval.
Write to Alberto Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
December 22, 2017 02:15 ET (07:15 GMT)
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