Thyssenkrupp Reaches Settlement With Employees on Tata Merger -- UPDATE
December 22 2017 - 6:49AM
Dow Jones News
By Alberto Delclaux and Max Bernhard
Thyssenkrupp AG (TKA.XE) said late Thursday that it reached a
collective agreement with German 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 for the roughly 28,000 employees of Thyssenkrupp's
steel operations, the German company said. Previously announced job
cuts of up to 2,000 will be carried out in a manner that is
socially responsible, it said.
Activity in the majority of sites will also be assured until
Sept. 30, 2026, Thyssenkrupp said, although it will review the
profitability of specific units at three plants in 2020 to decide
whether they will keep operating.
The steelmaker said it plans to continue investing at least 400
million euros ($474.8 million) per year in its German sites.
Thyssenkrupp and Tata will each hold a 50% stake in the future
joint venture for at least six years. In case of an initial public
offering of the steel joint venture, both companies would be
required to hold at least a combined 50.1% stake in the new
company, meaning that Thyssenkrupp and Tata could reduce their
holdings to no less than 25.05% each if the joint venture goes
public, Oliver Burkhard, Thyssenkrupp's chief human resources
officer said in a call to journalists.
The agreement, which IG Metall's collective-bargaining committee
recommends its 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 and
Max Bernhard at max.bernhard@dowjones.com
(END) Dow Jones Newswires
December 22, 2017 06:34 ET (11:34 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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