A PYMNTS Company

Germany: Union seeks employment assurances in Thyssenkrupp-Tata Steel merger

By  |  December 5, 2017

Germany’s biggest union has given Thyssenkrupp AG until December 22 to guarantee jobs and investments before the labor group will give its blessing to a joint venture with Tata Steel.

The IG Metall union submitted a 10-point catalog of demands including assurances that the Indian company won’t flood the European market with steel, the union’s Dusseldorf-based spokesman Mike Schuerg said by phone.

Thyssenkrupp reached a tentative deal in September to merge its European steel businesses with Tata in a bid to create the region’s second-largest producer and help tackle overcapacity in the industry. The companies flagged the possible loss of as many as 4,000 jobs from a newly combined workforce of about 48,000.

“The courtship with Tata’s gone on for a year and a half and we may be presented with a month or so to sign off on it,” Schuerg said. “We need clarity and assurances.”

Full Content: Brink Wire

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.