The ailing department store group Galeria Karstadt Kaufhof continues to shrink. The Verdi union wants to get as much out of collective bargaining as possible for the employees.
Under difficult circumstances, collective bargaining begins for the approximately 17,400 remaining employees of the reeling department store group Galeria Karstadt Kaufhof. The Verdi trade union and the management of the insolvent company are meeting today in the former Hertie and Karstadt department store on Frankfurt’s Zeil, which has been threatened with closure several times in its history.
The Verdi union insists that after the failure of the first restructuring from 2020, the collective bargaining agreements for the retail sector should now apply again. At the time, the Galeria employees had agreed to a reduced wage agreement as a contribution to the restructuring, which, according to Verdi, meant up to 5,500 euros less annual salary for a full-time employee. The insolvency money that has since been paid from the second insolvency proceedings expired in January.
Area collective agreement “financially impossible in the foreseeable future”
Management sees no scope for higher salaries during the planned restructuring. A spokesman for the company said on Thursday that management and the restructuring experts deployed had made it clear that payment according to the collective wage agreement would be “financially impossible in the foreseeable future and also inappropriate in terms of content”. Nevertheless, the negotiations are open and constructive and are confident of reaching a result that is good for all sides. One strives for a “more suitable” department store collective agreement.
A few days ago, the district court in Essen opened new insolvency proceedings for the retail giant. It follows on from the previous protective shield procedure. Galeria submitted the insolvency plan with details of the restructuring concept to the court. The company is managed by the former management and the insolvency expert Arndt Geiwitz as general representative. The Düsseldorf lawyer, Frank Kebekus, acts as trustee for the creditors.
Unclear future for over 100 branches
So far, it is not publicly known how the 129 branches will continue. There is talk of up to 81 locations that could be closed or sold to interested parties such as the textile chain Aachener. According to the administrator Kebekus, there should still be ongoing negotiations with the respective landlords. Frankfurt’s Zeil department store is also at risk because the group has invested millions of euros in the conversion of the former Kaufhof building just a few meters away. A creditors’ meeting is planned for March 27 in Essen, which will decide on the overall plan.
There is already a reconciliation of interests negotiated with the works council for those employees who have to leave Galeria. They should receive severance payments of up to 7,500 euros and also be prepared for six months at a transfer company for a new career. (dpa)