Railway workers in Germany prepare for 6-day strike

The German Train Drivers' Union (GDL) had decided to strike for the fourth time in the last 3 months after wage increase negotiations with German Railways (DB-Deutsche Bahn) once again ended in failure.

6-DAY STRIKE DECISION

The work stoppage will begin on freight trains today at 18:00 local time, and on passenger trains on January 24 at 02:00. The strike is planned to end on January 29 at 18:00.

German Railways warned that there will be major disruptions in the nationwide train network during the six-day strike.

In a statement from German Railways (DB), it was noted that DB is preparing for the GDL's next strike, and the following was stated: "Train drivers affiliated with the GDL will be on strike from Wednesday, January 24, 2024, to Monday, January 29, 2024. This will lead to major disruptions in DB's long-distance, regional, and S-Bahn services during this period. The emergency timetable provides only very limited train services for DB's long-distance, regional, and S-Bahn services."

CALL FOR 'RE-NEGOTIATION'

In the statement, which expressed that DB expects significant restrictions in regional transport within a few days, a call was made once again for the GDL to return to the negotiating table.

The new strike is the fourth and longest strike to date in the last 3 months regarding the wage dispute between German Railways and the GDL.

The union is demanding a monthly salary increase of an average of 550 euros for employees at railway companies, especially train drivers, and a one-time payment of up to 3,000 euros to combat inflation. The GDL is also demanding that the working hours of shift workers be reduced from 38 to 35 hours per week without any reduction in wages.

German Railways, on the other hand, proposed an average increase of 4.8 percent in train drivers' salaries starting from August and 5 percent from April 2025. The GDL did not accept this offer.

At the same time, German Railways is offering flexibility regarding working hours and is rejecting the union's demand for a reduction in working hours due to labor shortages. In addition, German Railways has so far proposed an optional model that provides for a one-hour reduction in working hours for shift workers.

German Train Drivers' Union (GDL) Chairman Claus Weselsky did not accept the German Railways' offer, arguing that they were not willing to negotiate, and therefore the strike was "legal and proportionate."

GERMAN EMPLOYERS ARE WORRIED

While Germany is facing weak macroeconomic data such as a decline in industrial production, unusually high inflation, rising interest rates, and criticism of the coalition government, it is pointed out that the nationwide long railway strike will increase economic problems.

The strike in question is also expected to impose significant restrictions on industry. Sectors such as automotive, which rely heavily on rail transport, may have to reschedule.

The German Association of the Automotive Industry (VDA) emphasizes that the GDL's six-day railway strike will strain transport in Germany and Europe, and therefore companies in the German automotive industry.

The German Chemical Industry Association (VCI) stated that companies are immediately developing flexible solutions together with logistics service providers, but believes that this can only partially compensate for the restrictions and delays in rail logistics.

The German Economic Institute (IWKöln) announced that the railway strike would lead to a loss of approximately 100 million euros per day in economic output.

Michael Groemling, one of the experts at IWKöln, warned that given that other transport routes are also disrupted due to the situation in the Red Sea, the latest strike could lead to 1 billion euros in losses in a short time.

Stating that the German economy is already in a recession, Groemling said, "Something is brewing. This situation (the stagnation in the economy) now threatens to get even worse."

Commerzbank's chief economist Joerg Kraemer calculated that the strike could cost the transport sector 30 million euros per day, stating that much more damage could occur if factories have to stop production due to supply problems. Kraemer also stated that the train drivers' strike further worsened Germany's already damaged image as a business location.

Some politicians in the country have called for stricter laws to prevent such strikes in the future.