associate sponsors

Llyod
HDFC

Thyssenkrupp labor chief demands better deal than Port Talbot | Reuters

FRANKFURT Workers at German steelmaker Thyssenkrupp will refuse to pick up the tab for concessions being offered to British unions by Tata Steel to further a merger, Thyssenkrupp's labor chief told Reuters on Monday.Thyssenkrupp and Tata have been in talks for about a year to merge their European steel operations to cut costs and overcapacity, but negotiations have been complicated by Tata's huge pension deficit in the UK.The German company's labor chief Wilhelm Segerath said he sees no reason why Thyssenkrupp's plants should suffer because of job and investment guarantees offered to workers at Port Talbot, Britain's biggest steel plant, in return for pension cuts.

Tata has now offered to guarantee production at Port Talbot, Wales, for five years and to invest across its British business in return for being able to close the final-salary pension scheme to future accrual."If they get five years, we want at least 10 years," Segerath said. "We won't accept that our plants will now be endangered in a consolidation. Even an attempt to do so would trigger massive resistance from us."

He cited "enormous structural problems" at Port Talbot, which lost a million pounds ($1.22 million) a day in the past financial year but has since turned profitable, mainly thanks to external factors including higher prices and a weaker pound.

(Reporting by Tom Kaeckenhoff; Writing by Georgina Prodhan; Editing by David Goodman)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Jan 09, 2017 22:00 PM

Also Watch

Watch: The true stories from Dharavi that inspired Rajinikanth's Kaala
  • Thursday, March 8, 2018 Watch: Cyrus Khan talks about Parkour, jumping across walls and why he hates sitting
  • Thursday, May 31, 2018 Unwind: India's basketball sensation Amjyot Singh has his eyes set on becoming an NBA regular
  • Monday, May 28, 2018 First Day First Showsha — Review of Solo: A Star Wars Story in 10 questions
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See



{if $hideJSforEU != 'yes'} {/if}