Tata Steel Europe starts negotiations with the European Workers' Council

Tata Steel Europe is working with its European Workers' Council to discuss further details on proposals for a transformation program designed to protect its long-term future. It aims to build a financially strong and sustainable European business that can invest the funds needed to accelerate innovation and move the company towards carbon neutral steel production.

During a meeting that marked the formal start of a consultation process with European Works Council staff, Tata Steel Europe shared the initial proposals for its transformation program, outlined on November 18. Tata Steel Europe intends to reduce labor costs. This is expected to result in an estimated headcount reduction to 3,000 people, about two thirds of whom will be in leadership and office positions.

Tata Steel has agreed with EWC on the next procedure and will meet in the coming weeks to discuss all the details.

The program focuses on four areas for improving financial performance.

Increased sales of high-value steels through improved product mix and customer focus

Increase efficiency by optimizing manufacturing processes supported by big data and advanced analytics.

Reduced employment costs resulting in projections. a reduction in the number of employees to 3,000 in Tata Steel Europe's operations, about two-thirds of whom are expected to be in management and office positions.

Reduce procurement costs through smarter sourcing and stronger partnerships with companies in the Tata Steel group.