Thyssenkrupp has reached agreement with workers on the restructuring of its German springs and stabilisers operation.
The two parties have agreed on the loss of around 500 jobs at the Hagen and Olpe sites.
The redundancy package includes offers of transfers to other jobs at Thyssenkrupp, outplacement agency support including training and help with finding jobs outside the group, and special support programmes for older employees up to retirement age.
Mario Gropp, CEO of the springs and stabilisers business unit, said: "This negotiation result meets our standards for socially responsible restructuring. With the social plan and reconciliation of interests agreed, we have created a good framework to provide affected employees with individual support in transitioning from work to work."
Under the restructuring plan presented at the end of last April, stabiliser production at Olpe will cease by the end of 2021. This will affect around 330 jobs.
All development and production of springs and stabilisers in Germany will be concentrated in Hagen, including prototype construction, small-run stabiliser production, spare parts and serial spring production for cars and electric vehicles.
Production strategy will be revised and moved to a higher degree of automation. The optimisation of production processes will result in the elimination of up to 160 jobs at the site by summer 2022. Around 320 people will remain employed there.
On 1 October, the start of Thyssenkrupp's 2020/21 fiscal year, the springs & stabilisers business unit became part of the Multi Tracks segment which combines business units that are to be continued under partnerships or outside the group in the future. Springs and stabilisers currently operates nine production sites in Germany, Hungary, Brazil, Mexico, and China and employs around 3,400 people worldwide.