German Train Drivers' Longest-Ever Strike Disrupts Travel and Estimated to Cost Economy Billions

ICARO Media Group
Politics
24/01/2024 23h12

German train drivers have initiated their longest-ever strike, causing travel woes for thousands of passengers and raising concerns among economic experts about the potential billion-euro cost to the economy. The strike, called by the GDL union, began on Wednesday, with passenger traffic affected until Monday and freight trains striking since Tuesday.

The transport minister, Volker Wissing, condemned the "destructive" six-day industrial action, highlighting the additional strain on supply chains already disrupted by attacks from Yemen's Houthi rebels on Red Sea shipping. Deutsche Bahn, the national railway service, expressed concern that essential cargo traffic, including supplies for power plants and refineries, would inevitably be impacted by the strike.

The consequences of the prolonged strike extend beyond long-distance trains, as suburban services, including those in Berlin operated by Deutsche Bahn, are also affected. This comes just over a week after the previous round of walkouts between January 10 and 12.

Passengers have been left scrambling to alter or cancel their travel plans due to the ongoing strike. While Deutsche Bahn estimated a cost of "a low two-digit million figure" per strike day, analysts predict a much larger impact on the economy. Michael Groemling from Cologne's Institute for Economic Research warned that nationwide train stoppages can cost up to 100 million euros per day. Considering the disruptions in sea freight caused by Houthi attacks and issues in road transport, it is estimated that this strike could potentially cost up to a billion euros.

Transport Minister Wissing criticized the GDL union for refusing to engage in negotiations during the strike, pointing out the inconvenience caused to train travelers. However, the union stated that they rejected Deutsche Bahn's "third and allegedly improved offer" due to the company's lack of willingness to reach an agreement.

The GDL union is demanding higher salaries to counter inflation and a reduced working week from 38 to 35 hours without a decrease in wages. They argue that these measures are necessary to make train driver jobs more appealing to young people. In response, Deutsche Bahn criticized the latest round of industrial action, stating that they had offered pay increases of up to 13 percent, a one-time inflation bonus, and a possible reduction in the working week by one hour from 2026.

Deutsche Bahn previously faced conflicts with the EVG rail union, representing non-driver rail personnel, which resulted in an agreement being reached in late August of last year. The ongoing strike by the GDL union now adds to the challenges faced by the railway service and exacerbates the economic struggles currently experienced by Germany.

As the strike continues, authorities and stakeholders are closely monitoring the situation, hoping for a resolution that would alleviate the disruptions and prevent further economic damage.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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