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Workers of Thyssenkrupp approve restructuring plan and await financing

Thyssenkrupp Europe workers voted in favor of a sweeping restructuring program, paving the way for the revival and revitalization of Germany's biggest steelmaker.

The IG Metall union announced on Friday that 77% members of the participating members voted in favor of the plan with 62% voting.

The restructuring program includes reductions in jobs, working time, bonus payments and site closures. However, forced redundancies are avoided until 2030.

According to a source with knowledge of the situation, the plan, which was agreed upon in July following marathon negotiations between management, IG Metall and IG Metall's board, should save over 100 million euros ($117) per year.

Thyssenkrupp had announced earlier plans to cut up to 11,000 positions, or around 40% of their workforce, as well as reduce production capacity, from 11.5 millions tonnes per annum to 8.7-9.0million tonnes.

Knut Giesler said that the decision "was not easy" for many of his members. They understood that the sacrifices were necessary for the future of the Steel Division.

The agreement, which runs until September 2030 is seen as crucial for Thyssenkrupp’s broader strategy of spinning off its steel division into a joint-venture with the holding company of Czech billionaire Daniel Kretinsky, who already owns a 20 percent stake in tkSE. Thyssenkrupp intends to sell an extra 30% of its stake in the restructuring.

The workers' representatives stated that it is now up to Thyssenkrupp AG to finalize financing arrangements.

Tekin Nasikkol (head of the tkSE works council) said: "We have reached our limit and given our maximum contribution." Now it is time for the board of directors to act. $1 = 0.8542 Euros (Reporting and editing by Kirsti Knolle)

(source: Reuters)