Thyssenkrupp says it welcomes approval by IG Metall members for the joint venture collective agreement in which the German supplier and Tata Steel plan to combine their European operations.
Thyssenkrupp and its unions agreed to enter into a collective agreement, which, among other things, safeguards jobs until September, 2026.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
After IG Metall’s collective bargaining committee recommended accepting the agreement, members were invited to vote by February.
“The members of IG Metall at the steel sites have decided by a clear majority in favour of the collective agreement and this will give the planned joint venture a strong future,” said Thyssenkrupp chief human resources officer, Oliver Burkhard.
“This joint result does justice to the interests of the company and gives our employees security.”
Tata Steel is also currently in the process of dialogue with its employee representatives. In parallel with this, due diligence is under way. In addition, independent opinions have been commissioned by Thyssenkrupp on the economic viability of the joint venture and the UK pension liabilities of Tata Steel Europe.
The signing of the joint venture agreement is targeted for early this year. Once regulatory approval has been received, the closing could take place at the end of 2018..
Thyssenkrupp announced the formation of a joint venture of its European steel activities with Tata Steel Europe in September.
Its aim is to create a leading European flat steel provider and position it as a technology leader.
The new company would have estimated sales of roughly EUR15bn (US$18.3bn) and employ around 48,000 people.
