FRANKFURT: German labour union IG Metall said Finnish stainless steel maker Outokumpu agreed on Sunday to push back the planned closure of its plant in Bochum until at least August 2015 and offer its workers compensation as well as jobs elsewhere.
Outokumpu said in February it had scrapped plans to shut the plant, which it bought as part of its acquisition of German steelmaker ThyssenKrupp's stainless steel business, this year.
The group is trying to cut costs and return to profit amid weak European demand and overcapacity that has pushed down stainless steel prices.
According to IG Metall, Outokumpu has agreed to review the feasibility of a shift of melt shop capacity from Bochum to its Tornio plant in Finland and Avesta in Sweden, pushing back a closure of the plant until August 2015 at the earliest.
In addition, it will continue to pay the 450 workers in Bochum their wages until the end of 2016, give them a one-time payment of 10,000 euros each and offer them jobs elsewhere. "No employee needs to fear loss of his job," IG Metall said in a statement.
Outokumpu also promised that there would be no compulsory redundancies at any of its German plants until the end of 2020, five years longer than under the previous agreement. It will also put on ice a planned outsourcing of accounting jobs until the end of 2020, IG Metall said.
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