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STRIKES

Paris cafés and restaurants see profits tumble as strikes enter third week

While he lays the tables for lunch, Paris bistrot owner Guillaume Join worries whether anyone will come, as the strikes paralysing public transport in the city enter their third week.

Paris cafés and restaurants see profits tumble as strikes enter third week
Business owners are calling for a pause in terrace fees. Photo: AFP

“Normally we have at least 80 lunch sittings a day, but yesterday we had just 12,” said Join, whose L'Ecritoire restaurant in the 4th arrondissement has seen sales halved since the protest began on December 5th.

Even the terrace, usually crowded with students hanging out where Charles Baudelaire is said to have presented his lyrical masterpiece Les Fleurs du Mal, is empty.

With no end to the strike in sight, Paris restaurants are at the forefront of businesses facing another bleak Christmas, a year after violent “yellow vest” demonstrations in the capital drove away locals and tourists alike.

READ ALSO Strikes leave Paris shopkeepers fearing another Christmas slump


December is usually peak time for shops and restaurants in Paris. Photo: AFP

“In the mornings people are stressed out trying to get to work on time, at lunchtime few people go out, and at night they rush to get home,” Join said – he himself has had to replace one of his two cooks who lives outside the city and could not find a way in.

On the other side of the Seine, Le Mesturet, a bistrot popular with office workers near the Opera, posted a joke on its Twitter account about the vanished trains, saying “it's better to laugh than cry” about seeing half as many clients as usual.

Trade groups have sounded the alarm, with the UMIH hospitality union calling on Wednesday for a moratorium on terrace fees that cafés and restaurants pay the city.

“It's catastrophic,” said Join. “Chain restaurants have bigger profits and can hold out for a month or two, but not independents.”

Franck Delvau, co-president of the UMIH, confirmed that many Paris restaurants had reported revenue drops of 50 to 60 percent from a year earlier – when sales were already suffering from the “yellow vest” disruptions.

“Once people finally make it home after a day of misery, they don't want to go back out again,” he said.

The Procos retailers' federation said that revenues at Paris businesses overall were down 25 to 30 percent last week because of the strike.

France's CDCF commerce board said businesses in other cities have been less impacted since residents often have cars and are less reliant on public transport.

The government has already moved to alleviate the pain, accelerating the reimbursement of tax credits and allowing businesses to delay some tax payments – the same measures used during the height of the “yellow vest” protests.

Junior Economy Minister Agnes Pannier-Runacher on Friday urged people to patronise local businesses during the crucial holiday season, saying “it's time to give them a hand”.

READ ALSO Will there be any French train services running at Christmas?


After a day battling with crowded and sketchy transport services, most Parisians are choosing to stay at home. Photo: AFP

With Paris Metro lines closed or providing only a handful of trains each day, and streets swollen with traffic jams, tourists were finding it hard to get to famed eateries or the hottest new arrivals on the Paris food scene.

Outside the Bouillon Chartier, the Belle Epoque institution that eschews reservations, the usual line to get in is much shorter than normal this week.

Debora Orosco, 30, visiting from Mexico with a friend, was checking out snails in garlic and parsley sauce and other classics on the menu posted outside.

“Some friends told us this is a great place to eat,” she told AFP.

“But the truth is that we came because it's close to where we're staying… The strike makes it a lot longer to get from one side of the city to the other,” she said, smiling as a white-aproned waiter ushered them in to an empty table.

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TRAVEL NEWS

German train strike wave to end following new labour agreement

Germany's Deutsche Bahn rail operator and the GDL train drivers' union have reached a deal in a wage dispute that has caused months of crippling strikes in the country, the union said.

German train strike wave to end following new labour agreement

“The German Train Drivers’ Union (GDL) and Deutsche Bahn have reached a wage agreement,” GDL said in a statement.

Further details will be announced in a press conference on Tuesday, the union said. A spokesman for Deutsche Bahn also confirmed that an agreement had been reached.

Train drivers have walked out six times since November, causing disruption for huge numbers of passengers.

The strikes have often lasted for several days and have also caused disruption to freight traffic, with the most recent walkout in mid-March.

In late January, rail traffic was paralysed for five days on the national network in one of the longest strikes in Deutsche Bahn’s history.

READ ALSO: Why are German train drivers launching more strike action?

Europe’s largest economy has faced industrial action for months as workers and management across multiple sectors wrestle over terms amid high inflation and weak business activity.

The strikes have exacerbated an already gloomy economic picture, with the German economy shrinking 0.3 percent across the whole of last year.

What we know about the new offer so far

Through the new agreement, there will be optional reduction of a work week to 36 hours at the start of 2027, 35.5 hours from 2028 and then 35 hours from 2029. For the last three stages, employees must notify their employer themselves if they wish to take advantage of the reduction steps.

However, they can also opt to work the same or more hours – up to 40 hours per week are possible in under the new “optional model”.

“One thing is clear: if you work more, you get more money,” said Deutsche Bahn spokesperson Martin Seiler. Accordingly, employees will receive 2.7 percent more pay for each additional or unchanged working hour.

According to Deutsche Bahn, other parts of the agreement included a pay increase of 420 per month in two stages, a tax and duty-free inflation adjustment bonus of 2,850 and a term of 26 months.

Growing pressure

Last year’s walkouts cost Deutsche Bahn some 200 million, according to estimates by the operator, which overall recorded a net loss for 2023 of 2.35 billion.

Germany has historically been among the countries in Europe where workers went on strike the least.

But since the end of 2022, the country has seen growing labour unrest, while real wages have fallen by four percent since the start of the war in Ukraine.

German airline Lufthansa is also locked in wage disputes with ground staff and cabin crew.

Several strikes have severely disrupted the group’s business in recent weeks and will weigh on first-quarter results, according to the group’s management.

Airport security staff have also staged several walkouts since January.

Some politicians have called for Germany to put in place rules to restrict critical infrastructure like rail transport from industrial action.

But Chancellor Olaf Scholz has rejected the calls, arguing that “the right to strike is written in the constitution… and that is a democratic right for which unions and workers have fought”.

The strikes have piled growing pressure on the coalition government between Scholz’s Social Democrats, the Greens and the pro-business FDP, which has scored dismally in recent opinion polls.

The far-right AfD has been enjoying a boost in popularity amid the unrest with elections in three key former East German states due to take place later this year.

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