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No mass layoffs at Tata Steel for the time being, Dutch management says

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No mass layoffs at Tata Steel for the time being, Dutch management says

Tata Steel, Velsen-Noord, IJmuiden, Netherlands
Undated file photo of the Tata Steel complex in Velsen-Noord near IJmuiden, Noord Hollandphoto: Sinicakover / DepositPhotos

Despite announced layoffs, employment at Tata Steel Nederland in IJmuiden "in outline" will be guaranteed until October 2021, the management of the metal group in the Netherlands wrote in a letter to trade union FNV, which is in the hands of the Telegraaf. The management of Tata Steel Nederland says it will adhere to previously made agreements with the trade unions, but adds that eventual layoffs are inevitable.

In November, after months of speculation, Tata Steel confirmed that the group was cutting 1,600 jobs in the Netherlands, and another 1,400 jobs in the rest of Europe. But according to the letter in the Telegraaf's possession, the Dutch jobs at least will be retained for the time being.

Agreements previously made with the trade unions mean that no layoffs are possible in the Netherlands until at least October 2021. Tata Steel Nederland will adhere to these agreements. "The management confirms that both FNV and the management have signed the employment pact and that we have both committed ourselves to it. The pact is then also the guideline for the development of the improvement program of Tata Steel Nederland. It goes without saying that we will both adhere to the pact," the letter from the Tata Steel Nederland management to FNV said, according to the newspaper.

The management added, however, that it is inevitable that jobs will disappear, because steel production, margins, and the earnings model are al "under great pressure". 


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