ThyssenKrupp AG reached a settlement with its trade union IG Metall regarding employment of workers after a merger of its European steel operations with that of Tata Steel Ltd.'s is finalized.
The agreement, which will be valid until Sept. 30, 2026, ensures continuation of employment for workers of the joint venture.
"That means that the previously announced necessary reduction of up to 2,000 jobs will be carried out as in the past in a socially responsible way," Thyssenkrupp said Dec. 21.
The collective agreement is to come into force with the start of the joint venture, which includes setting up an employee executive committee consisting of the board and employee representatives who will discuss strategic issues three times a year.
The company intends to conduct a profitability analysis at the end of 2020 for operational units in Bochum, Eichen and Hüttenheim to decide if they should be continued.
Thyssenkrupp plans to invest at least €400 million per year for the enhancement of production facilities.
The company said that it will hold an interest in the joint venture for at least six years, and there may be a change to the shareholder structure on the back of an IPO.
The IG Metall union will vote on the negotiated agreement at Thyssenkrupp's steel sites in January 2018, and the collective bargaining committee has recommended acceptance of the deal.
Thyssenkrupp expects the joint venture agreement to close at the end of next year.