Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

German union demands end to talks between Thyssenkrupp and Tata

Published 02/05/2017, 13:19
Updated 02/05/2017, 13:30
© Reuters. FILE PHOTO: A German steelmaker ThyssenKrupp worker controls a blast furnace in Duisburg
TKAG
-
TISC
-

DORTMUND, Germany (Reuters) - German labour union IG Metall demanded on Tuesday that industrial company Thyssenkrupp (DE:TKAG) end talks to merge its European steel business with that of India's Tata Steel (NS:TISC).

Thyssenkrupp and Tata Steel have been in discussions since July about merging their European steel assets to cut costs and reduce overcapacity, a move that has sparked concerns about job cuts in Germany.

"Management should put its merger plans on ice and discuss with us how the group can make progress," said IG Metall's Detlef Wetzel, who is a member of Thyssenkrupp Steel Europe's supervisory board.

Thyssenkrupp last month unveiled plans to cut costs by 500 million euros (£422.4 million) at its steel business. IG Metall has said that could lead to 4,000 out of the 27,000 jobs at Thyssenkrupp Steel Europe being axed.

Labour bosses also fear that more cuts could be made at Thyssenkrupp's German steel sites to make room for Tata's ailing steel plant in Port Talbot, Wales, where a deal has been struck to protect jobs and investment.

The German union will stage a rally on Wednesday in the city of Duisburg, home to the headquarters of Thyssenkrupp Steel Europe, and several thousand workers are expected to attend.

© Reuters. FILE PHOTO: A German steelmaker ThyssenKrupp worker controls a blast furnace in Duisburg

"You cannot just say that the UK sites won't be touched but take the axe to Germany," Wetzel said on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.