Thyssenkrupp Steel workers approve restructuring plan, await financing

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BERLIN (Reuters) -Workers at Thyssenkrupp Steel Europe (tkSE) voted to approve a sweeping restructuring plan, setting the stage for the revival of Germany’s largest steelmaker, contingent on Thyssenkrupp AG’s commitment to finance the initiative.

The IG Metall union said on Friday that 77% of participating members supported the plan, with 62% turnout in the vote held from July 21 to September 4.

The restructuring programme includes cuts to jobs, working hours, and bonus payments, as well as site closures, but avoids forced redundancies until 2030.

The plan, agreed in July after marathon negotiations between management and IG Metall, is expected to save more than 100 million euros ($117 million) annually, according to a source familiar with the matter.

Thyssenkrupp Steel had earlier announced plans to slash up to 11,000 jobs, around 40% of its workforce, and reduce production capacity from 11.5 million tonnes to 8.7-9.0 million tonnes per year.

“This decision was not easy for many members,” Knut Giesler, IG Metall’s regional leader, said in a statement. “But they understood that these sacrifices are necessary to secure the future of the steel division.”

The collective agreement, set to run until September 2030, is seen as pivotal for Thyssenkrupp’s broader strategy to spin off its steel business into a joint venture with Czech billionaire Daniel Kretinsky’s holding company, which already owns a 20% stake in tkSE. Thyssenkrupp plans to sell an additional 30% stake as part of the restructuring.

Workers’ representatives said the ball is now in Thyssenkrupp AG’s court to finalise financing arrangements.

“We have gone to our pain threshold and made our maximum contribution,” Tekin Nasikkol, head of tkSE’s works council, said. “Now it’s time for the board to act.”

($1 = 0.8542 euros)

(Reporting by Kirsti Knolle; Editing by Susan Fenton)