Stock market today: S&P 500 ends flat on fresh trade war worries
By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF (Reuters) -Thyssenkrupp’s deputy chairman and labour leader Juergen Kerner will vote against extending the contract of CEO Miguel Lopez at a board meeting on Friday, saying he had not delivered a promised turnaround of the steel division.
Kerner’s position is a major escalation in the conflict between management and workers over the German conglomerate’s restructuring, in particular its steel division after a stake was sold to Czech billionaire Daniel Kretinsky.
Germany, famous for its strong and vocal unions, has seen repeated high-profile clashes between boards and labour representatives - including a recent one at Volkswagen (ETR:VOWG_p) - but open rebellion by a senior board member is rare.
"A contract extension should only be discussed and decided on once the person concerned has delivered," Kerner told Reuters.
Kerner said his decision to vote against a contract extension reflected the broader sentiment within IG Metall, Germany’s most powerful union, which is affiliated with most of the 10 labour representatives sitting on Thyssenkrupp (ETR:TKAG)’s 20-member supervisory board.
That has increased the chances that Thyssenkrupp Chairman and former Siemens (ETR:SIEGn) manager Siegfried Russwurm will have to use his casting vote to get Lopez a new contract against the will of worker representatives.
Kerner warned of massive resistance if that happens.
Thyssenkrupp shares extended losses after the comments and were down 4.9% at 1232 GMT.
’UNACCEPTABLE’
Thyssenkrupp referred to earlier comments by Lopez that a restructuring of the group’s steel business was a top priority.
Thyssenkrupp’s supervisory board will convene on Friday to vote on a planned spin-off of its warship division TKMS as well as a new contract for Lopez, who took over two years ago, sources said last week.
Kerner, deputy chief of Germany’s biggest union IG Metall and also a member of the supervisory boards of Siemens, Siemens Energy and Traton, said that while he and Lopez had established a working relationship, "we now have a fundamental mistrust on both sides".
He said workers could use means at their disposal, including strike action, going forward unless Thyssenkrupp was able to draw up a convincing future plan for the steel division and sufficient funding, which he described as red lines.
Kretinsky, who acquired a 20% stake in TKSE last year and is considering increasing his share to 50%, has so far declined to engage with employees about his plan for the business, Kerner said.
This reluctance, he said, makes him an unsuitable partner.
"We have officially asked Mr Kretinsky for talks, both verbally and in writing and via WhatsApp. We always receive a very friendly reply that he would like to talk to us at a suitable time, but that he is currently unable to make a statement," Kerner said.
"In my view, this is unacceptable."
A spokesperson for Kretinsky’s EP Group had no immediate comment.