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Business News » World News

Germany urges Thyssenkrupp to reach deal with unions over Tata

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Updated: Thu, Sep 14, 2017
08:53 pm
Reuters
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Germany`s Economy Minister urged management at Thyssenkrupp to seek an agreement with its workers over plans to merge the group`s European steel operations with those of Indian peer Tata Steel.

A joint venture with Tata Steel is the preferred option of Thyssenkrupp Chief Executive Heinrich Hiesinger to restructure the group`s steel business, despite ongoing resistance from labour representatives, who fear thousands of job cuts.

"Such an important and strategic corporate decision should be made following intensive consultation and in consensus with labour representatives. So far, the labour side is not convinced by the decision," said Economy Minister Brigitte Zypries, a member of the Social Democrats.

"This leads to uncertainty among employees. That is not good for the company and the workers."

Thyssenkrupp`s supervisory board will gather on Sept. 24, the day of Germany`s general elections, to discuss the plan and the company this week said it was possible a memorandum of understanding could be announced this month.

Unions will stage protests against the plans in the city of Bochum on Sept. 22.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

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