Thyssen Krupp CFO & IG Metall Differ over State Aid
Handelsblatt reported that there is a serious conflict between management and employee representatives of ThyssenKrupp over state participation in the steel division of the ailing group. Thyssen Krupp CFO Mr Klaus Keysberg told the Rheinische Post "The topic of state participation is off the table. The economic stabilization fund is not the appropriate means to support the steel sector in the current situation with equity. In our case, due to the interest payments and the repayment modalities, such a stake would be associated with such high costs for the company that the additional burden would seriously jeopardize the future of the steel. This would have led to significant and continually rising annual interest payments that could account for around 9% of the overall aid. This cannot be met by the cash flow of the steel business.”
The trade union German IG Metall reacted indignantly to the rejection of the group board of the state. IG Metall board member & Deputy Chairman of the Supervisory Board of Thyssen-Krupp AG Mr Jurgen Kerner said "We will continue to pursue a state entry at full speed. I expect management to examine all forms of state participation. There isn’t just the economic stabilisation fund. Other solutions are also possible.”
The WSF fund is set up by the German government to bail out stricken groups in the wake of the pandemic.