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Shops close across Berlin as retail workers go on strike

A number of Berlin retail outfits and supermarkets will close their doors on Monday as shop workers go on strike for better pay.

Shops close across Berlin as retail workers go on strike
A Verdi trade union member holds a sign saying "THALIA strikes. We demand a return to collective bargaining." at a previous strike at Berlin Wittenbergplatz in July, 2021. Photo: picture alliance/dpa | Paul Zinken

The trade union behind the retail strikes – Verdi – said Monday’s action would impact several branches of IKEA, Rewe, Kaufland, Galeria Karstadt Kaufhof, Edeka, Thalia, Cos, H&M and Primark across Berlin and Brandenburg.

It will also target the Rewe warehouses in Oranienburg and Mariendorf.

The strike arrives just days after Verdi called an indefinitely walkout at Berlin’s largest hospital, Charité, after negotiations with its parent company faltered. 

In a statement announcing Monday’s strikes, Verdi said talks over pay increases in the retail sector had come to a standstill. 

Workers are calling for a 4.5 percent pay rise this year, in addition to a training allowance and a €45 bonus each month. 

They also want to negotiate a “pension-proof minimum wage” of €12.50 per hour for all shop workers. According to the union representatives, their goal is to ensure that any agreement reached between the employers and the union would apply across the board in the retail sector for an initial period of nine months. 

READ ALSO: German train drivers announce strikes after pay talks collapse

Meanwhile, the retail companies have proposed a two percent increase in wages this year, plus a one-off bonus payment of €300. This would be followed by a further 1.4 percent increase from July 2022 and a further two percent in July 2023.

However, the agreement would initially only apply to shops that weren’t affected by forced closures during the Covid pandemic – so, realistically, only the supermarkets would follow this timeline.

The other retail outfits would be able to postpone this year’s wage increases until next year.

‘Incredibly angry’

As workers prepared for the walkout on Monday, Conny Weißbach, negotiator and head of the Berlin-Brandenburg trade department, said the workers were “incredibly angry” about the lack of progress in negotiations. 

She pointed out that, with Germany’s 3.8 inflation driving up the cost of living, retail workers would still end up less well-off than before under the retail chains’ proposals. 

READ ALSO: German consumer prices rise by highest level in three decades on back of pandemic measures

“This year, (a two percent pay rise) would mean a loss of wages in real terms,” she said. “Shop assistants would have less in their wallets than before.

“Moreover, it does not in the least do justice to the extraordinary burdens of the employees – and this in the face of enormous increases in turnover in the retail sector.”


Striking Rewe workers quote the company’s slogan – “Live better” – on a placard that reads “Rewe – Live Better. But us too!” Photo: picture alliance/dpa | Jörg Carstensen

Striking workers gathered at their central strike location at Berlin’s Breitscheidplatz on Monday morning, where there were performances and talks. 

Left Party politicians Gregor Gysi and Gesine Lötzsch and Social Democratic Party deputy leader Kevin Kühnert offered their support to strikers.

“The employers must finally accept their social responsibility at the next negotiations on September 16th,” Weißbach said. “The shop assistants have not only more than earned a real wage increase, they also need it.” 

Wave of strikes 

Monday’s retail strikes have come at a turbulent moment in German industrial relations, following repeated strikes by the GDL train drivers’ union and ongoing hospital strikes in Berlin.

On Thursday, Verdi called on workers at Berlin’s Charité hospital and its parent company, the Vivantes Hospital Group, to commence an indefinite walkout in a fight for better working conditions and wages.

Dorothea Schmidt, Vivantes’ HR managing director, said the timing of the strikes was “completely incomprehensible” given that the company had put forward proposals for taking pressure off nursing staff and agreed to consider the unions’ other demands the previous Monday. 

Talks have been called off during the strikes. 

Meanwhile, on Friday, Deutsche Bahn announced that it would be making an “improved offer” to the GDL union in an attempt to stave off another walkout, which was due to be planned on Monday.  

READ ALSO: Are the German rail strikes going to end soon?

However, as of Monday, the GDL had yet to respond to the offer. In a press statement on the GDL website, the union said it would “evaluate the offer” and inform people of further steps “in due course”. 

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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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