The unions are fighting against the merger between Thyssenkrupp and Tata Steel

Thyssenkrupp, formed in 1999 by the merger proposed two German-companies. It was caught in the center of political attention while trying to restructure its activity in the steel industry in response to a global drop in steel prices. Unions oppose this effort, which they say will lead to the loss of more than 4,000 jobs, as well as a possible merger of operations with Tata Steel Ltd.

The threat that Thyssenkrupp AG may cut thousands of jobs is turning into a campaign issue less than two weeks before the biggest electoral test. Before the upcoming federal parliamentary elections, from September.

The merger proposed by the two German-companies is not well seen

„I don’t want to imagine what will happen when decisions are no longer discussed in German, but rather in English and when decisions are not made in Essen or Duisburg, but in London, Holland or Mumbai”, he said social democrat Garrelt Duin, Minister of Economy, during a rally organized on Wednesday (May 3, 2017) outside the Thyssenkrupp plant in Duisburg, the largest steel production unit in Europe. „And that’s why we don’t want this solution,” he said of the proposed merger.

„Prime Minister Hannelore Kraft must show solidarity. And to fight with us for the future of steel production at Thyssenkrupp”. Said Wilhelm Segerath, the company’s leader, in a telephone interview. „The merger should not be taken into account. Thyssenkrupp can develop better on its own and to do this we need the support of politicians.

Thyssenkrupp employees in Essen oppose the discussions that started last year. To create a joint venture with Tata Steel. They are based on political promises made during the election season. To be translated into reality when the new state government takes office.

„My hope is that politicians use their influence on managers and companies to secure jobs. So that the production locations do not disappear”. Frank Mueller, a Thyssenkrupp employee, said on Wednesday, where 7,500 people gathered to oppose the restructuring plans.

Article source: https://www.bloomberg.com/news/articles/2017-05-04/germany-s-shrinking-steel-industry-collides-with-key-state-vote