London/Frankfurt: Tata Steel's European labour representatives said they remained unconvinced by a planned joint venture with Thyssenkrupp, adding there were still numerous details that needed to be hammered out before they could endorse a deal.

The remarks by Tata Steel Europe's European Works Council (EWC) threaten a further delay to a deal to combine Thyssenkrupp's steel operations with Tata's European steel business, a pact which has not been signed because of resistance from Dutch workers.

"The EWC acknowledges there is an industrial rationale for pursuing this JV, but with the matters outstanding the EWC remains unconvinced that this partnership with Thyssenkrupp would be in the best interests of the Tata Steel Europe's operations and the employees we represent," it said in a statement.

Earlier, there were reports that Thyssenkrupp's labour representatives have also expressed concern over the proposed joint venture. after a recent plunge in profits at the Indian company's European operations.

Since Thyssenkrupp and Tata agreed to the preliminary terms of a tie-up, the Tata business has been under pressure. Earnings at Tata Steel Europe have dropped on rising raw-material costs, while Thyssenkrupp's profit rose.

Thyssenkrupp had said in May that it expected to be able to sign the deal with Tata Steel, agreed in principle last September, in the first half of 2018. Tata Steel, too, had confirmed that timeline.

The planned transaction would combine Thyssenkrupp's and Tata Steel's European steel operations to create the continent's second-largest steel maker after ArcelorMittal with sales of 15 billion euros ($17.7 billion).

The EWC said Thyssenkrupp had been unwilling to engage and help its advisers understand the German firm's plans with regards to the joint venture, adding the financial structure of the deal remains a "work in progress".

A Tata Steel spokesperson said, "We will continue to engage in constructive dialogue with our employee representatives throughout the process of creating the joint venture."

He added that Tata Steel is committed to delivering the joint venture without the need for compulsory redundancies.

Tata's Dutch works council said in April it still had "major reservations" over the joint venture, even though Tata promised limited job losses and an independent position for the Dutch operations within the new company. Reuters

The EWC, which oversees all the Tata Steel Europe trade unions, said its advisers had recommended it oppose the current business plan because it prioritises shareholder dividends over the long-term development of the join venture.

Thyssenkrupp was not immediately available to comment.

Tata Steel Netherlands reached a preliminary agreement with Dutch unions in March, after promising job losses would be limited to between 300 and 400 supporting functions while excluding any forced redundancies until 2026.

Earlier Bloomberg story

Thyssenkrupp AG's labor representatives reiterated their concern over the company's plans for a multi-billion dollar joint venture with Tata Steel Ltd. after a recent plunge in profits at the Indian company's European operations.

Since Thyssenkrupp and Tata have agreed to the preliminary terms of a tie-up of their European steel operations, the Tata business has been under pressure. Earnings at Tata Steel Europe have dropped on rising raw-material costs, while Thyssenkrupp's profit rose.

"We are still concerned that the JV is a sensible solution given the circumstances," said Wilhelm Segerath, a senior official at the IG Metall labor union who sits on Thyssenkrupp's supervisory board. "The diverging development at both companies emphasizes our concerns about the viability of Tata's European operations, specifically the U.K. plant."