Deutsche Bahn has a dubious reputation for infamous delays and cancellations (see video above). Recently, a train driver’s strike caused additional dissatisfaction among travelers. Now it has become known that the bonus payments for the managers of the state-owned company could be even more generous than already planned – due to a delay.
According to information from Spiegel, the bosses of Deutsche Bahn – which is in a dismal state, not least because of billions in debt – will receive bonuses that also earn interest.
Payment delayed due to electricity price ceiling
The background is the electricity price brake, which was introduced in Germany in the autumn of 2022. The law required that a company that used the price cap to a certain extent could not pay out bonuses. That is why there were no bonus payments for Deutsche Bahn managers in 2022. The electricity price brake expired at the beginning of 2024 and the bonuses may flow to railway bosses with a delay. Due to high inflation, they now benefit from interest on their benefits, which according to Spiegel can amount to seven percent.
Five-figure interest rates
Richard Lutz, CEO of Deutsche Bahn AG, is likely to collect a five-figure sum in addition to his bonus of around 1.3 million euros. The state-owned company’s approximately 1,100 top managers and approximately 2,400 senior executives are expected to benefit from the interest.
The high bonus payments alone caused discontent in Germany, given the unreliability of the railways, and interest rates are likely to increase this further. The supervisory board, which must decide on payments, says that “contractual agreements” are being respected. A spokesperson for the German Federal Ministry of Transport made it clear that energy price cap regulations do not provide for “interest on bonuses”.
Deutsche Bahn calls for negotiations after strike
Meanwhile, Deutsche Bahn again called on the train drivers’ union GDL on Friday to return to the negotiating table. “We are ready to negotiate, we are ready to talk,” DB spokeswoman Anja Bröker said in Berlin. “It is now also up to the GDL to get back to the table. Strikes to enforce all demands, that’s not how collective bargaining works.” The three-day strike across Germany ended at 6 p.m.
GDL boss Claus Weselsky had previously said: “If nothing is done, the next labor dispute is inevitable.” He probably meant a new offer from the railways.
Key demand for working time reduction
The GDL started the strike in Deutsche Bahn passenger transport on Wednesday morning, and there has been a freight transport strike since Tuesday evening. With the industrial action, the union wanted to increase pressure on the railways to achieve, among other things, a reduction in working hours for shift workers with full wage compensation in the collective labor agreement negotiation dispute with the company. The railway has so far rejected this.
From Saturday, train traffic from Austria to Germany should run smoothly again. The night trains – the connections to Amsterdam and Hamburg – will resume on Saturday evening. ÖBB trains via Deutsche Eck and Westbahn trains were not affected by the work stoppage.
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.
