Thyssenkrupp Faces Backlash Over Board Expansion
The Supervisory Board of industrial giant Thyssenkrupp expanded its Executive Board, sparking criticism from employees. In a move that deviated from tradition, two new board members were appointed despite the unanimous rejection of employee representatives at the company's highest decision-making body.
"This is the first time in the history of the company that board members are being appointed despite the unanimous rejection by the employee side," IG Metall, the German metalworkers' union in North Rhine-Westphalia, stated in a press release.
The newly appointed board members are Volkmar Dinstuhl, former head of the Multi Tracks segment, and Ilse Henne, currently serving on the Management Board of the trading division. Their roles will commence on January 1, 2023.
The employee representatives harshly criticized the expansion of the Management Board, arguing it contradicts ongoing cost-saving programs and fails to act as a model for Thyssenkrupp's workforce. "Even a dozen board members can't run this company against its own employees. Preaching water and drinking wine won't result in success," the employees stated.
At the same meeting, the election of Schott CFO Jens Schulte as CFO successor was unanimously approved. This shift is planned for the second half of the 2023/24 financial year.
Thyssenkrupp announced the appointment intends to focus the Executive Board more strongly on operational performance and further development of the portfolio. The upcoming realignment signifies that divisions will be assigned to individual members of the Executive Board in the future.
The Krupp Foundation, Thyssenkrupp's largest single shareholder with a 21% stake, expressed support for the expanded Executive Board. Chairwoman of the Board of Trustees, Ursula Gather, is a member of the Supervisory Board. The foundation stated the new composition would best navigate the challenging environment and enable the continuation of the performance program in a targeted manner.
Thyssenkrupp Key Points
- Thyssenkrupp boasts significant involvement in the defense industry, contributing to Germany's strategic capabilities.
- Criticism from IG Metall highlights concern about the impact of Executive Board expansion on the company's Steel division and broader industrial sector.
- Thyssenkrupp's automotive division plans collaborations with the metal industry to boost efficiency and product quality.
- The controversy surrounding the Supervisory Board's expanded Executive Board sparks debate within Germany's industrial sector.
- IG Metall, the metal division of IG Metal, continues partnership with Thyssenkrupp's metal division, focusing on innovation and sustainability in the metal industry.
Enrichment Data Insights:
- Employee tensions and union conflict:
- Thyssenkrupp faces conflict with IG Metall and employee representatives over CEO Miguel López's leadership, restructuring, and job cuts.
- Unions urge López to return to dialogue and fair co-determination practice, criticizing decisions that violate corporate culture and harm workers.
- Restructuring and job cuts:
- Thyssenkrupp's restructuring, including cuts and factory closures, faces resistance from workers and unions.
- Unions argue that these steps damage workers and the broader industrial sector, leading to ongoing labor disputes within Germany's industrial sector.
- Future challenges:
- Prolonged standoffs and increased costs are expected amid significant labor disputes in 2025.
- Companies like Bosch, ZF Friedrichshafen, and Volkswagen grapple with comparably challenging labor relations, leading to a reevaluation of how industry navigates restructuring efforts.
