Costly Strikes
November 18, 2007
The figure, which was calculated by the German Institute for Economic Research in Berlin, includes the lesser losses caused by passenger-service cancellations, according to a report in the Bild am Sonntag newspaper on Sunday, Nov. 18.
The strike, which was the largest in Deutsche Bahn history, was called by the GDL, a small union, seeking a better deal for drivers than contracts previously accepted by two larger railways unions which also have clerical and engineering members.
The GDL's campaign has also angered the head Germany's Social Democratic Party, part of Chancellor Angela Merkel's ruling coalition.
Threat to negotiating system
Kurt Beck, the SPD chairman, told the paper that the strike was a threat to Germany's pay-bargaining system, in which unions agree to negotiate in blocs.
"If it came about that every enterprise had a range of different collective labor contracts, the outcome would be great insecurity and instability," he said.
The drivers' union, which has warned that its next strike may have no time limit, says it will not resume talks unless the railways company, Deutsche Bahn, speaks to the GDL alone and excludes the other two unions from the accord.
It insisted Sunday it would also not return to the negotiating table unless Bahn raised its pay offer to drivers. The union is demanding a 31 percent pay raise and a contact separate from other rail workers.
Deutsche Bahn has offered to increase pay by up to 10 percent in exchange for longer working hours, but opposes giving the GDL its own contract, saying it would encourage small numbers other professionals to exploit their economic leverage to secure excessive raises.
European consequences
Despite media reports over the weekend that the Bahn was preparing a new contract, GDL deputy chairman Claus Weselsky told the German news agency DPA he was not aware of any higher offer yet.
The European Union said it hoped a deal would be reached quickly. As France continues to experience a nationwide rail strike, EU Transport Commissioner Jacques Barrot told the Bild am Sonntag a long walk-outs could have serious economic consequences not only for all of Europe.
"[Strikes] could damage the economy, not just in Germany and France, but also in neighboring countries," he said. "I hope the two sides reach a deal via quick and fair negotiations -- without waiting for the state to intervene."
GDL has set Bahn an ultimatum to file a better offer by the end of Monday.