Tata Steel: no redundancies during reorganization



There will be no redundancies in the Netherlands when the European activities of the Indian steel group Tata Steel, including the former Hoogovens in IJmuiden, are reorganized. Tata Steel Europe repeats this when asked after the Dutch branch received an ultimatum from the FNV union.

The union threatens to take action if the steel company fails to comply with existing employment retention agreements until October next year and does not extend it for another five years. The union also wants the promise that there will be no forced layoffs with the Dutch branch and that no parts of the company will be sold.

Earlier this week, Tata Steel Europe emphasized that there are no changes in the reorganization agreements that have already been made. The existing employment pact is respected. It says that there will be no forced layoffs until October 2021, a spokeswoman confirms Sunday after FNV set the ultimatum, which expires on June 2.

Furthermore, Tata Steel Europe insists that “absolutely no question” is a scenario in which the steel company in IJmuiden is split off from the parent company. “IJmuiden has a lot of potential and within Tata Steel there is a lot of ambition and commitment to realize this, together with the employees. It is absolutely not appropriate to become independent.” FNV, among others, previously argued for a nationalization of the Dutch branch of Tata Steel.

The management of Tata Steel Netherlands, to whom the FNV ultimatum was addressed, has not yet responded, a spokesperson said. He expects to be able to do that before the deadline.

Director Roel Berghuis of FNV confirms that he has not yet received an official response to the ultimatum from the management of the Dutch branch. “I have the feeling that two Tatas are speaking here. Who is my interlocutor? I am dismayed that we hear this through the media. The response must come from Tata Steel Netherlands. You expect an invitation. An interview.” He emphasizes that FNV has many other requirements besides the employment pact. Actions can therefore still follow.

Also read:

FNV Metaal sets tough ultimatum to Tata Steel: no layoffs before October 2026, otherwise strikes will follow

Opinion: Should the steel company in IJmuiden be separate from Tata Steel Europe?

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