Tata Steel workers lose faith in new JV
European workers at India’s Tata Steel no longer believe that a joint venture with Thyssenkrupp is in the best interests of the company, the European works council said in a statement.
The two companies agreed last year to combine their European steel activities, a move that would create the continent’s second-largest steelmaker but still needs approval from the European Commission, which plans to make a decision by 17 June.
Works Council chairman Frits van Wieringen confirmed that workers do not support a package of remedies designed to win the support of the European Commission.
“We are now unconvinced the joint venture is in the best interests of Tata Steel Europe. We believe that the agreements we reached with Tata are not being honoured,” the works council said in a statement issued on Wednesday.
Workers at Thyssenkrupp, who have long been critical of the deal, last year gave their consent in exchange for far-reaching guarantees, including job and plant protection until 2026.