How labor disputes are damaging the economy – 2024-03-15 06:55:35

by times news cr

2024-03-15 06:55:35

Deutsche Bahn has been on what feels like a continuous strike for months. The impact on the economy is immense. They affect both large companies and small retailers.

The fifth strike by the GDL train drivers’ union in the current collective bargaining round has just ended. It is not known when the next one will come. The only thing that is clear is that he will probably come. Union boss Claus Weselsky has announced wave strikes, which are characterized by the fact that they can take place quite spontaneously. How long they last is also up to the union. This is annoying for passengers because they have to reschedule at short notice. For the economy, ongoing strikes mean one thing above all: loss of profits.

“A one-day nationwide rail strike costs around 100 million euros a day in economic output,” said Michael Grömling, head of economic development at the employer-related Institute of the German Economy (IW Cologne). Because many industries rely on freight transport. For example, those who are waiting for deliveries of wood, steel and mineral oil. According to Deutsche Bahn, freight trains transport around 40 million tons of coal every year.

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Goods pile up in the display

But retailers and restaurateurs at train stations are also affected. They lack customers on strike days. Baked goods are piling up in the displays in the branches. On Tuesday, an employee of the “Kamps” bakery chain at Berlin Central Station said she felt the strike when the cash registers fell in the evening. On such days, an employee of an Asian snack bar relies on the regular customers who still come because “the tourists with their suitcases aren’t coming today.”

At Frankfurt train station, a restaurateur called the situation a “catastrophe.” He told the “Frankfurter Rundschau”: “I’m losing 60 to 70 percent of customers.” Selling it is hardly worth it anymore. After all, the stores continue to operate their branches and pay fees and staff.

The Yorma’s restaurant chain is also affected. It operates 61 branches throughout Germany. Most are at train stations. Authorized representative Matthias Schmidt told the “Hessenschau” that Yorma’s had recorded a 60 percent drop in profits throughout Germany during the strikes in January. This could continue in the coming months.

Train station catering is missing 30 million euros

The train station catering is also included in the aforementioned damage of 100 million euros per strike day. However, it is only an estimate. IW experts assume that one percent of consumption will be lost nationwide per strike day. That’s around 30 million euros. Then there are the costs that Deutsche Bahn itself incurs and the consequences for the supply chains.

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The train drivers’ union GDL under its boss Claus Weselsky has been arguing with Deutsche Bahn about a new collective agreement since November. Since then there have been five strikes, for a total of nine days. According to experts’ estimates, the strikes in this collective bargaining round are likely to have cost the economy around 900 million euros.

The union is fighting for higher salaries and fewer working hours at the railway. The crux of the conflict continues to be the demand that shift workers only have to work 35 hours instead of the current 38 hours for the same money. In a moderation, the railway accepted a compromise proposal. This envisaged reducing working hours to 36 hours in two steps by 2028.

The GDL refused and allowed the talks to fail. It no longer announces new strikes 48 hours in advance, but rather at shorter notice. The train drivers’ union with its chairman Claus Weselsky has also not ruled out strikes over Easter.

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