IG Metall Condemns Thyssenkrupp Plan to Spin Off MX Division, Limit Union Role
Thyssenkrupp's MX Division Spin-Off and Union Response
Union Criticism of Legal Structure Change
FRANKFURT, May 11 (Reuters) - Germany's IG Metall union on Monday lashed out at management of Thyssenkrupp for plans to change the legal form of the group's Materials Services (MX) division as part of efforts to divest it.
Implications of the KGaA Structure
The legal form of the so-called KGaA, which the union said the group was planning for the unit, was designed to minimise the influence of unions, which usually have far-reaching influence via their supervisory board representation.
Thyssenkrupp's Divestment Strategy
• Thyssenkrupp is currently in the process of divesting all of its divisions to become a holding firm, with the company's hydrogen and marine units having been separately listed in recent years.
Union Concerns Over Labour Representation
• In a leaflet handed out to union members on Monday, Juergen Kerner, deputy head of IG Metall and Thyssenkrupp's supervisory board, warned the KGaA structure would severely limit the sway of labour representatives at MX.
Potential Outcomes for MX Division
• Sources told Reuters in February that Thyssenkrupp could spin off, list or divest MX as soon as this year and was considering changing the business's legal form to the KGaA to keep control in case of a majority sale.
MX Division's Financial and Workforce Impact
• MX made more than a third, or 11.4 billion euros ($13.43 billion), of Thyssenkrupp's sales last year and employs more than 15,000 staff.($1 = 0.8486 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Ros Russell)
