Jun. 29, 2018 - Thyssenkrupp’s (TKAG.DE) powerful labor representatives on Thursday signaled their support for a planned joint venture with Tata Steel, effectively guaranteeing that the landmark deal will be approved by the group’s supervisory board. Thyssenkrupp works council head Wilhelm Segerath, after a supervisory board meeting of Thyssenkrupp Steel Europe, said “The joint venture that has now been agreed is better than any joint venture that would have been created without the participation of the labor side. A joint venture had never been the goal of employees but it was still the better alternative.”
Tekin Nasikkol, chairman of Thyssenkrupp Steel Europe’s works council and a member of Thyssenkrupp’s supervisory board, said “It has always been our goal to secure jobs and sites, to safeguard the interests of our colleagues and to include all IG Metall members. That has been largely achieved, I think.”
Half of the 20 seats on Thyssenkrupp’s board are held by labor representatives. Whether they would back the planned European steel venture has been the single biggest source of uncertainty for Hiesinger. Workers’ support for the deal is a major victory for Chief Executive Heinrich Hiesinger, whose vision to transform Thyssenkrupp into a technology company depends a great deal on reducing its exposure to the volatile steel industry.
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