Tata Steel in IJmuiden has been financially skimmed for years by its Indian parent company. That’s what it writes Noordhollands Dagblad Saturday after studying annual reports from the steel company.
For example, Tata Steel IJmuiden, the former Hoogovens, purchases coal and iron ore from a sister company in Singapore for a very high price. In a recent financial year, the company in Singapore purchased raw materials for 1.9 billion euros and sold them for 3.9 billion to Tata Steel IJmuiden.
Over the years, the North Holland company, which has been in the hands of the Indian steel producer Tata Steel since 2007, is said to have paid more than 20 billion euros too much for the raw materials. In a response to the newspaper, Tata Steel IJmuiden tells the newspaper that these are market rates.
Managers received 45 million in bonuses in recent years
In addition, the company regularly cuts its workforce, while the number of managers grew in the same period. In the past nine years, the managers would have received a total of 45 million euros in bonuses. Tata Steel IJmuiden writes in a response (pdf) states that there is a “careful” remuneration policy and that it is accountable for this to the works council.
However, employee jobs have been under pressure for some time now. Even before the corona crisis had to be cut back on personnel. The COVID-19 outbreak exacerbated problems, especially as car factories came to a standstill. These factories are important customers of the company.
Before the summer, there were strikes at Tata Steel IJmuiden. Ultimately, the management and trade unions came to an agreement, whereby about a thousand jobs will temporarily disappear off the track.
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