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STRIKES

EXPLAINED: Why travel chaos from transport strikes in Germany could get worse

After a week of industrial action at several airports in Germany - and on Düsseldorf's public transport network - the threat of more strikes is looming large. Here's why the travel chaos could only just be beginning.

Public Transport Strikes Germany
A man stands at an U-Bahn station in Munich, closed during strikes last year. Photo: picture alliance/dpa | Lennart Preiss

With the cost of living soaring in Germany, unions are currently engaged in a process known as collective bargaining, demanding higher wages from employers to help cope with inflation. 

Among them are the EVG Transport and Rail Union – which covers employees of Deutsche Bahn – and the service and public-sector union Verdi.

While rail workers haven’t yet joined the wave of strike action Germany has seen in recent months, employees of local public transport operators and airport employees have been making their voices heard.

On Monday, employees at three major airports – Hamburg, Berlin and Hanover – all downed tools, followed by strikes at four other major German airports on Friday. An estimated 76,000 passengers were affected. 

This was accompanied by transport strikes in North Rhine-Westphalia – a state that’s been hit by multiple days of public sector strikes recently. 

But according to reports in Bild and the Süddeutsche Zeitung, a far bigger round of strikes could be on the horizon.

On March 27th, EVG and Verdi are considering a coordinated day of action that would hit not just local public transport and airports, but also train services and even motorways. 

While this hasn’t been voted on yet, negotiations next week will be crucial in deciding the path forward for the unions. EVG is aiming to meet with representatives from each of the companies whose employees it represents by March 23rd, and will make a decision on the wider strike after that date.  

If talks continue to stall, they also have the option of doing what Deutsche Post workers threatened to do shortly before they netted an 11.5 percent pay rise a few weeks back: going on strike indefinitely. 

READ ALSO: Will Deutsche Bahn staff be next to strike in Germany?

What are the unions demanding?

The last wage agreement between Deutsche Bahn and EVG was concluded back in 2021, and this agreement is set to expire this year.

To replace it, the union is calling for a new agreement that includes a 12 percent pay increase for workers – amounting to at least €650 extra per month for senior employees and €325 more per month for junior employees. This could boost the pay packets of around 180,000 workers.

Meanwhile, Verdi has been engaged in tough negotiations for around 2.5 million workers in the pubic sector for several weeks. They’re asking for a 10.5 percent pay increase amounting to at least €500 per month for employees in local administration, hospitals, local transport, waste disposal and other public-sector jobs. 

In the second round of negotiations on February 22nd and 23rd in Potsdam, employers offered a staggered pay increase of five percent alongside inflation compensation bonuses totalling €2,500. Verdi rejected this offer, describing it as “an insult” and “declaration of war” on its members. The next round of negotiations is set to take place between March 27th and 29th. 

A Deutsche Bahn ICE train travels along a railway line in the Hanover region.

A Deutsche Bahn ICE train travels along a railway line in the Hanover region. Photo: picture alliance/dpa | Julian Stratenschulte

The unions say their demands are justified by the massive hike in costs their members are facing. Inflation hit 6.9 percent in 2022 in Germany, with price rises even entering the double-digits towards the end of the year. 

“We don’t want competition on the backs of workers, but good wages on for all workers in the mobility sector,” EVG negotiator Cosima Ingenschayder told Bild this week. 

Deutsche Bahn, meanwhile, says it has had to consider the future viability of the company in light of the ongoing war in Ukraine, its post-pandemic finances and the ongoing energy crisis.

However, on March 15th the company put forward an offer to EVG that includes a five percent pay increase over the next 12 months, one-off inflation bonuses for employees and a ‘minimum wage’ of €13 per hour. EVG has not yet responded to the offer. 

READ ALSO: EXPLAINED: Why are there so many strikes in Germany right now?

Can I get compensation for travel disruption? 

If the transport strikes do go ahead on March 27th as planned, there are a number of ways passengers can get compensation for missed or delayed journeys.

Deutsche Bahn’s policies state that passengers facing delays of more than 60 minutes can rebook free of charge, or get 25 percent of their ticket price refunded even if they take the journey. If you arrive at your destination more than 120 minutes late, you can claim a discount of 50 percent off the one-way ticket price.

Berlin's S-Bahn in summer.

Berlin’s S-Bahn in summer. Photo: picture alliance/dpa | Christoph Soeder

You can also check the Deutsche Bahn website or app for up-to-date details on cancelled, delayed or re-routed journeys.

For regional buses and trains, you’ll need to check the policies of your local transport operator. Most do offer some form of compensation, though this can be tricky to claim if you have a monthly or yearly subscription set up.

If you’ve had a flight delayed or cancelled, EU law states that you’re also entitled to compensation. This will depend on the delay and the distance of the flight but will generally be €250 for short flights, €400 for longer flights and up to €600 for flights covering more than 3,500 kilometres.

For more information on what you can do in the event of rail or airport strikes, check out our explainers below:

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BUSINESS & INDUSTRY

German rail operator Deutsche Bahn sells logistics unit to Danish group

Troubled German rail operator Deutsche Bahn announced Friday the sale of its logistics unit Schenker to Danish group DSV for €14.3 billion as it focuses on overhauling Germany's creaking train infrastructure.

German rail operator Deutsche Bahn sells logistics unit to Danish group

The state-owned German group, which has faced mounting criticism due to frequent train breakdowns and poor punctuality, said the deal would provide fresh investments into Europe’s biggest economy and help pay down its monster debts.

DSV chief executive Jens Lund hailed his logistics group’s acquisition, saying it would “bring together two strong companies, creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders”.

The new entity will aim to compete with other heavyweights in the sector, like DHL, UPS and FedEx. DSV, founded in 1976, said the deal was its biggest transaction to date.

The combined companies will have 147,000 employees in more than 90 countries and generate revenue of €39.3 billion. The transaction is expected to close in 2025.

Despite expectations of job cuts following the sale, DSV insisted Germany will remain a “key market” for the company and it will retain Schenker’s offices in Essen, western Germany.

‘Important step’

Deutsche Bahn launched the sale of Schenker, its most profitable subsidiary, at the end of 2023, seeking funds to pay down a 30-billion-euro debt and plough desperately needed investments into Germany’s ageing railways.

Deutsche Bahn CEO Richard Lutz said that the sale was the largest transaction in the operator’s history and “provides our logistics subsidiary with clear growth prospects”.

The Danish group plans to invest one billion euros in Germany over the next three to five years, Deutsche Bahn said.

The German group said the sale will enable it to focus on its top priority – improving rail infrastructure and operations, which are also seen as key to helping Germany reach climate goals.

A transport ministry spokesman in Berlin welcomed the move, saying Deutsche Bahn needed to “focus on its core business of rail transport in Germany. The sale of Schenker is an important step in this direction”.

READ ALSO: How Germany plans to fix its crisis-hit trains

Once a symbol of German efficiency, Deutsche Bahn has been blighted by problems in recent years, with critics blaming chronic underinvestment.

Breakdowns and delayed arrivals are now commonplace on the German railways. Last year 36 percent of long-distance trains arrived six minutes or more past their scheduled arrival time, well above the European average.

The network’s woes were painfully apparent when Germany hosted the Euro 2024 football tournament in June and July, with fans complaining frequently about problems.

Its net losses soared 16-fold year-on-year in the first half of 2024, with the operator blaming extreme weather, strikes and upgrades to its network.

READ ALSO: How travelling on German trains has become a nightmare for foreigners

By reducing its vast debts, the sale of Schenker “will make a substantial contribution to the group’s financial sustainability,” Deutsche Bahn chief Lutz said.

The sale of Schenker has left its employees in Germany fearing for their jobs, with staff protesting against the move outside the subsidiary’s office this week.

DSV has promised to maintain, and even increase, staffing numbers in Germany in the long term but an initial phase of cuts looks likely.

The Danish group plans initially to cut about 1,600 to 1,900 jobs at Schenker, many of them in administration, sources close to the matter told AFP.

However even before the sale, Schenker had been planning to cut several hundred positions, the sources said.

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