A rigorous restructuring plan should get the department store chain Galeria Karstadt Kaufhof back into the black, which has run into financial difficulties. After all, 47 branches across Germany must now be closed – the Verdi trade union has therefore called for warning strikes against the “outrageous plans” in some homes. However, the management does not understand this.
The anger and disappointment are enormous, Hamburg Verdi chairman Heike Lattekamp emphasized to the German media. “The staff has been investing money in the restructuring of the company for years and is waiving up to 5,500 euros every year,” she criticizes that even a return to the collective labor agreement was vehemently ruled out until recently.
“Our response to these scandalous plans is the first regional warning strikes,” Lattekamp continued.
A total of 19 department stores – owned by Austrian investor René Benko’s Signa Holding – actually took part in Saturday’s warning strike. However, little changed for customers in Hamburg, Baden-Württemberg and Hessen – the shops remained open anyway.
Management fears “devastating damage”
“All branches are open and will remain open,” says a spokesperson for the company in Essen. As the “Business Insider” reported, there was also a statement from management to union members: “The planned strike measures are clearly illegal and threaten to cause devastating damage for which they would be held liable,” said CEO Miguel Müllenbach and the chief representative. Arndt quoted Gproteinz.
The company is still in insolvency proceedings and an “existential crisis situation”. And further: “To inflict massive economic damage on the company by striking and forcing branches to close on one of the most important shopping days of the year, in such a situation, is blatantly against the purpose of the insolvency plan. .”
4000 workers lose their jobs
The recovery plan for the ailing department store chain is difficult. Despite the high state aid in recent years, 47 of the 129 branches have to be closed – 4,000 employees are affected. However, the restructuring plan itself is not the problem for Verdi – rather, it is the deadlocked collective bargaining agreements for the approximately 17,000 workers that are driving union members to take to the barricades.
Your central requirement is that you consider retail regional area rates. Given the huge price increases over the past year, this is probably an existential point for many of the employees.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
