IG Metall Slams Thyssenkrupp Materials Services Spin Off
The IG Metall union criticized Thyssenkrupp for planning to change its Materials Services division into a KGaA legal structure to facilitate a divestment. Union leaders argue the move is designed to minimize labor influence on the supervisory board as the group transitions toward a holding company model.
THYSSENKRUPP AG is planning to convert its Materials Services unit into a KGaA legal structure to facilitate a divestment of the €11.4B division. The unit generated over one-third of group sales last year and employs more than 15,000 people. This move signals an acceleration of the group's transition into a holding company despite labor union opposition.
IG Metall deputy head Juergen Kerner warned that the KGaA structure would severely limit labor representatives' influence. In a leaflet distributed to members, Kerner said the legal form is designed to minimize union sway on the supervisory board. Union representatives typically hold far-reaching power in German corporate governance through these board seats.
