Because Germany wants to end coal power generation, the energy company Steag has to save: Almost a third of the jobs are to be cut. Power plants in Saarland and the Ruhr area are affected.
The Essen power plant operator Steag plans to cut around 1,000 of its 3,500 jobs in Germany. “We are striving for the most fair and socially acceptable job cuts,” said Andreas Reichel, member of the management, according to a statement on Thursday. However, due to the current difficult economic situation of the company, more limited financial resources are available than in the past.
The downsizing affects the power plant locations in the Ruhr area and Saarland, the activities directly related to them, the administrative areas and the other operational businesses in Germany. The “WAZ” had previously reported on the plans.
The cut was part of the board’s strategy for a new structure for the company, which should be implemented at the beginning of the 2022 financial year, it said. The plans were presented to the supervisory board on Wednesday. According to information from the German Press Agency, the workforce should be informed about the plans this Thursday morning.
Coal power plants are set to go offline in the coming years
According to “WAZ”, the core is the shutdown of the older hard coal power plants and a focus on renewable energies. By the beginning of 2022, the board wants to clarify when which power plant will go offline. The group, which belongs to the six Ruhr district municipalities, is drawing the consequences of the coal phase-out, which is costing almost every third of its jobs in Germany.
While lignite power plants could still run until 2038 according to the phase-out law, most hard coal power plants should be taken off the grid in the coming years. That affects all six German Steag locations, only the youngest block 10 in Duisburg-Walsum could run even longer according to the “WAZ” report. As the “WAZ” reports further, most of the jobs in the power plants are to be eliminated. The administration should be significantly reduced. The dismantling also affects the technical service units.