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Investing.com -- Workers at Thyssenkrupp Steel Europe (tkSE) have backed a sweeping restructuring deal that could revive Germany’s largest steel producer, provided parent company Thyssenkrupp AG secures the financing.
Shares in Thyssenkrupp AG O.N. (ETR:TKAG) popped more than 5% Friday after the news.
IG Metall union said on Friday that 77% of members who voted supported the agreement, with turnout reaching 62% in the ballot held between July 21 and September 4.
The package involves job and hour reductions, bonus cuts, and some site closures, but rules out compulsory redundancies until 2030. Reuters reported, citing a source, that the measures are expected to generate annual savings of more than €100 million ($117 million).
Thyssenkrupp Steel had previously signaled plans to cut as many as 11,000 positions—around 40% of its workforce—and scale back production capacity from 11.5 million tonnes to between 8.7 and 9.0 million tonnes per year.
"This decision was not easy for many members," said Knut Giesler, IG Metall’s regional leader. "But they understood that these sacrifices are necessary to secure the future of the steel division."
The collective agreement, which runs until September 2030, is central to Thyssenkrupp’s plan to separate its steel division and form a joint venture with Czech billionaire Daniel Kretinsky’s holding company, already a 20% shareholder in tkSE.
As part of the process, Thyssenkrupp intends to sell an additional 30% stake.
Union leaders stressed that the next move rests with the parent company. "We have gone to our pain threshold and made our maximum contribution," said Tekin Nasikkol, head of tkSE’s works council.
"Now it’s time for the board to act,” he added.
Thyssenkrupp AG shares are up over 150% this year, buoyed by investor optimism around the planned spin-off and listing of its high-demand Marine Systems unit and the company’s restructuring.