On Wednesday afternoon, the Independent Luxembourg Trade Union Confederation (OGBL) staged a protest against the planned acquisition of German lift manufacturer TK Elevator by Finnish company Kone. The union argues that so-called "synergies" often result in job losses.
OGBL members gathered for a protest picket in front of the headquarters of the investment fund Advent International in the Ville Haute neighbourhood of Luxembourg City. The action was part of an international day of protest that included events in Europe, the United States, and South Korea. Employees worldwide fear restructuring and have criticised a lack of transparency.
The planned transaction is valued at nearly €30 billion – an amount slightly higher than the budget of the Luxembourg state. For the investment funds Advent International and Cinven, it represents a billion-euro deal. They purchased TK Elevator in 2020 for approximately €17 billion and would now sell it for a considerable profit.
Such investment funds operate on the private equity model: companies are purchased, made more profitable, and sold off again after a few years. This is often achieved through restructuring, cost reduction measures, and efficiency programmes. However, trade unions criticise that such models frequently push social consequences into the background.
This is precisely the concern at play. Kone has announced that the deal will allow it to save €700 million through synergies. For trade unions, this is a warning signal. "Synergies always mean layoffs," said Joe Gomes, OGBL's deputy central secretary, adding that somewhere in the world, people are always losing their jobs.
Meanwhile, TK Elevator staff feel passed over. Markus Josten, president of the staff delegation at TK Elevator, said that all employees were expecting was an initial public offering (IPO). "We were informed about the deal with Kone at short notice, but the supervisory board was not in the loop," he stressed. To date, staff are still awaiting answers regarding the future of the various locations, factories, and employees.
In Luxembourg, around 50 people work for TK Elevator. Given the nature of the services provided in Luxembourg, massive layoffs are not expected. However, Josten did not rule out that individual administrative positions could disappear in Luxembourg as well. The larger concern relates to international locations and factories, including those in Spain, Germany, and South Korea.
In the event of synergies, the OGBL is demanding guarantees, notably greater transparency, social safety nets, and agreements on location and job security. Gomes stressed that the matter is not just about money, but about people and their families.
