In Germany, work at airports, bus and train stations came to a halt due to a 24-hour strike, informed Reuters. The workers’ demonstrations are the largest since 1992 and could continue during the Easter holidays.
The biggest strike in Germany since 1992 disrupted the work of millions of people. This hit the German economy hard. The interests of around 2.5 million public transport and airport workers are represented by the Verdi trade union, the position of another 230,000 railway and bus company employees is disseminated by the EVG trade union.
The demands of the strikers
If the parties fail to reach a compromise in the three-day wage negotiations, new strikes could begin, writes Reuters. Employers are offering a 5% pay rise over 27 months, along with a €2,500 lump sum payment. 5% – not less than €500 per month, and EVG – by 12%, i.e. not less than €650 per month. The authorities describe such conditions as unacceptable in a context of rising inflation, which reached 9.3% in February.
In recent months, inflation in Germany has been above the euro area average. The reason for this is that the country has been hit particularly hard by anti-Russian sanctions, as it was previously heavily dependent on gas supplies from Russia.
Economists say the deteriorating labor market in Germany, where there is a “chronic labor shortage”, is giving unions an advantage in negotiations.
“Employees are tired of being bombarded with promises, and working conditions are deteriorating, while there are plenty of vacancies,” said Frank Wernecke, CEO of Verdi.
Everybody’s on strike
The airport association ADV estimates that 380,000 passengers have been affected by the suspension of flights in Germany. The strike also affected the major air ports of Munich and Frankfurt. Nearly 1,200 flights were canceled in the latter alone, and those stranded at the airport were forced to spend the night on benches.
Workers from rail carrier Deutsche Bahn also joined the strike. According to a company representative, the protest affected the plans of millions of passengers who were unable to use public transport.
A sharp increase in workers’ wages could reduce the room for maneuver of Chancellor Olaf Scholz’s government. This will complicate federal budget negotiations, writes Reuters. Germany’s interior ministry said meeting the strikers’ demands would cost an extra €1.4 billion a year, and if the deal is extended to other public sector workers, as well as pensioners, the additional costs could reach 4.7 billion euros. Employers have also warned that higher wages for transport workers will drive up fares. At the same time, the parties expect to reach some sort of agreement this week.
Easter is in danger
However, EVG chairman Martin Berkert has warned that there could be more strikes over the Easter holidays. The head of the German Association of Civil Servants (DBB), Ulrich Silberbach, warned that if the negotiations do not lead to the expected results, “the situation in Germany will become very grim”.
“Then we will have to call an indefinite national strike,” he said.
Joerg Kremer, chief economist at Commerzbank, is convinced that so far the impact of the German workers’ strike on the economy has been very limited, but if they continue for longer, the situation could change.
“Losses will likely be limited to the transportation industry as factories will continue to operate and many employees will work from home,” he said.
