Reuters reported that Germany's biggest steelmaker ThyssenKrupp AG may temporarily cut some workers' hours as product demand slows.

A spokesman for the steelmaking arm, ThyssenKrupp Stahl, said that the company is in talks with the works council on whether a Kurzarbeit short work program would be launched at some of its German factories.

The ThyssenKrupp spokesman said that "The question on whether we will launch a Kurzarbeit or not is being studied. That means also that I cannot say anything about the timeframe, the factories affected and its extent. Developments in the steel market are weak."

Germany's short work system was used by many struggling companies in the 2008-09 recession, allowing them to preserve jobs by simply cutting the hours of employees when usage of plants was low. In this scenario, a company can quickly ramp up production to satisfy customer orders if demand picks up. The state compensates the worker for some of the lost hours.

ThyssenKrupp said in May 2012 blast furnace Number 9, which it closed in January 2012 and had planned to reopen two months ago, would remain shut for the rest of the year.

Source - Reuters

(www.steelguru.com)