Tata Steel Europe's European Works Council, the body representing the employees, will meet on November 27 to formally discuss the company's transformation programme that entails 3,000 job cuts across operations in the continent.
Voicing its displeasure against the planned job cuts announced by Tata Steel, the European Works Council, or EWC, said 'employees should not pay the price for Tata's failures' despite the challenges that the company is facing due to the current economic slowdown.
The job cuts announcement on November 18 has riled the employees of Tata Steel Europe's units in the UK and the Netherlands, prompting trade unions to consider approaching the European Parliament and even an industrial action.
"The employee representatives would like to be clear that while there are challenges across Tata Steel Europe, this transformation programme is a direct result of the company's failure to deliver the joint venture with thyssenkrupp and the complete absence of any Plan B," representatives of EWC said in a statement.
Tata Steel was hoping to turnaround its European business by merging with thyssenkrupp's steel business in the continent. But European Commission blocked the joint venture, noting that it may hurt competition.
The EWC has already met the management informally. Now the Council will meet formally, and its own internal consultation process will include experts analysing the transformation programme proposals.
"This 3,000 jobs doesn't solve the problems...you need to invest," Frits V Wieringen, Employees Chairman of EWC, said.
The proposed transformation plan has Tata Steel Europe targeting a positive cash flow by FY21-end. "It is also aiming for an EBITDA margin of around 10 percent throughout the market cycle. Based on FY19 revenue, this would equate to an EBITDA of 750 million pounds," the company said.The initiative comes after Tata Steel Europe, in the first six months of the current fiscal (starting April), reported a 90 percent drop in EBITDA to 31 million pounds.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.