Why is Germany experiencing an Intensive Wave of Strikes at the Beginning of the Year?

NEWS

2024.03.15

Following another failed negotiation between the German Railway Company and its workforce, the German Train Drivers' Union GDL announced on March 4th that they would strike again. Freight services will strike starting from Wednesday evening (March 6th), while passenger services will be affected from Thursday. The strike is expected to last for 35 hours. Claus Weselsky, the Chairman of the German Train Drivers' Union, stated, "The 35-hour strike is to make it clear to everyone in the republic what we are demanding: namely, a 35-hour workweek." He also mentioned that future strikes would no longer be announced 48 hours in advance and emergency train schedules would no longer be guaranteed, stating, "This means that the railways are no longer a reliable mode of transportation."

 

On the same day, the German United Services Trade Union ver.di called for a warning strike by ground staff at Lufthansa on Thursday (March 7th) and Friday. From Thursday at 4:00 a.m. until Saturday at 7:10 a.m., passengers should prepare for flight cancellations or changes.

 

German train drivers have held multiple strikes since November last year. Apart from salary increases, the main goal of the strikes is to reduce the weekly working hours from 38 to 35 hours while ensuring no impact on wages. Ground staff at Lufthansa have also gone on strike several times in the past month. Just over a week ago, ground staff from Lufthansa's technical support and aviation training departments participated in a strike that did not affect passenger travel. In early February, security personnel at 11 airports in Germany, including Frankfurt, Berlin, and Hamburg, went on strike, affecting the travel plans of 200,000 passengers. Additionally, at the call of the Verdi trade union, short-distance public transportation across Germany has also been repeatedly striking, causing significant inconvenience to people's travel.

 

Why so many strikes?

Strikes in the transportation sector usually have a strong impact on the public, affecting daily life more than other industries.

 

Hagen Lesch, an expert on labor issues at the Cologne Institute for Economic Research (IW), stated that labor negotiations in Germany last year were more difficult and conflictual than in any other year since 2010. Although there is no evaluation yet for the first quarter of 2024, "there are indications that this year will maintain a similar high level as last year."

 

One reason for this situation is the high inflation in recent years. According to data from the Federal Statistical Office, Germany had an average inflation rate of 6.9% in 2022, the highest since reunification. The inflation rate for the entire year of 2023 was 5.9%. However, real wages did not see an increase until 2023, the first since 2019, with a growth of only 0.1%. On the other hand, the German economy is weak, experiencing a recession last year with a 0.3% decline in output, and economists expect the sluggishness to continue temporarily. Hagen Lesch stated that the economic weakness reduces the willingness of employers to make concessions. Another significant factor is the current labor shortage, which strengthens the bargaining position of employee representatives, with unions hoping to achieve more for their members through active negotiation.

 

Right to strike protected by the German Constitution

In Germany, the right to strike is part of the so-called freedom of association and is protected by the German Constitution, specifically Article 9, Paragraph 3, which states that citizens have the right to form associations to protect and promote working conditions and economic conditions, and to strike for this purpose.

 

The term "associations" referred to in Article 9, Paragraph 3 of the Basic Law, means unions and employers, so in Germany, strikes are always led by unions and are not allowed for employees without union support.

 

During labor negotiations, unions can organize warning strikes to demonstrate the determination of union members to achieve their demands. "Real" strikes only occur after failed labor negotiations and, according to union statutes, require a vote of approval from over 75% of members.

 

During a strike, the work obligations of striking employees are suspended, and the obligation of employers to pay wages is also suspended. To increase members' willingness to strike, unions pay wages during the strike period, the amount depending on the current income of striking members, membership fees paid to the union, etc. However, strike wages usually cannot fully compensate for employees' income losses. If labor disputes last a long time, there is a risk of a decrease in strike participation rates because unions cannot force their members to participate in strikes.

 

In Germany, civil servants and judges have a duty of loyalty to their employers, so strikes are not allowed. If they participate in strikes, they will be subject to disciplinary measures such as salary deductions. However, whether the strike ban also applies to teachers with civil servant status is increasingly being questioned. The German Federal Constitutional Court recently ruled again that the strike ban is effective for teachers with civil servant status, and the European Court of Human Rights has not yet ruled on related appeals.

 

German government non-interference

Although the continuous strikes in the transportation sector have affected people's lives, most people still understand them. Irene Dingeldey, a social scientist at the University of Bremen's Institute for Work and Economy, pointed out that strikes are the only form of resistance employees have to emphasize their demands.

 

The German government also does not want to get involved in labor disputes but instead urges both sides to find solutions at the negotiating table, taking responsibility for the tens of thousands of affected daily passengers. Although the shares of Deutsche Bahn AG are wholly owned by the German federal government, its commercial operations are carried out by a subsidiary private company controlled by the state.

 

It is currently unclear which industries will hold strikes in 2024. According to records from the Institute of Economic and Social Sciences (WSI), involving nearly 12 million employees, labor negotiations between unions and employers under the German Trade Union Federation expired between December 2023 and December 2024. For example, labor negotiations in the metal and electrical industries, with over 3.6 million employees, will begin in September. Labor negotiations in the federal and local public service sectors (2.4 million employees) will expire at the end of 2024.

 

Following another failed negotiation between the German Railway Company and its workforce, the German Train Drivers' Union GDL announced on March 4th that they would strike again. Freight services will strike starting from Wednesday evening (March 6th), while passenger services will be affected from Thursday. The strike is expected to last for 35 hours. Claus Weselsky, the Chairman of the German Train Drivers' Union, stated, "The 35-hour strike is to make it clear to everyone in the republic what we are demanding: namely, a 35-hour workweek." He also mentioned that future strikes would no longer be announced 48 hours in advance and emergency train schedules would no longer be guaranteed, stating, "This means that the railways are no longer a reliable mode of transportation."

 

On the same day, the German United Services Trade Union ver.di called for a warning strike by ground staff at Lufthansa on Thursday (March 7th) and Friday. From Thursday at 4:00 a.m. until Saturday at 7:10 a.m., passengers should prepare for flight cancellations or changes.

 

German train drivers have held multiple strikes since November last year. Apart from salary increases, the main goal of the strikes is to reduce the weekly working hours from 38 to 35 hours while ensuring no impact on wages. Ground staff at Lufthansa have also gone on strike several times in the past month. Just over a week ago, ground staff from Lufthansa's technical support and aviation training departments participated in a strike that did not affect passenger travel. In early February, security personnel at 11 airports in Germany, including Frankfurt, Berlin, and Hamburg, went on strike, affecting the travel plans of 200,000 passengers. Additionally, at the call of the Verdi trade union, short-distance public transportation across Germany has also been repeatedly striking, causing significant inconvenience to people's travel.

 

Why so many strikes?

Strikes in the transportation sector usually have a strong impact on the public, affecting daily life more than other industries.

 

Hagen Lesch, an expert on labor issues at the Cologne Institute for Economic Research (IW), stated that labor negotiations in Germany last year were more difficult and conflictual than in any other year since 2010. Although there is no evaluation yet for the first quarter of 2024, "there are indications that this year will maintain a similar high level as last year."

 

One reason for this situation is the high inflation in recent years. According to data from the Federal Statistical Office, Germany had an average inflation rate of 6.9% in 2022, the highest since reunification. The inflation rate for the entire year of 2023 was 5.9%. However, real wages did not see an increase until 2023, the first since 2019, with a growth of only 0.1%. On the other hand, the German economy is weak, experiencing a recession last year with a 0.3% decline in output, and economists expect the sluggishness to continue temporarily. Hagen Lesch stated that the economic weakness reduces the willingness of employers to make concessions. Another significant factor is the current labor shortage, which strengthens the bargaining position of employee representatives, with unions hoping to achieve more for their members through active negotiation.

 

Right to strike protected by the German Constitution

In Germany, the right to strike is part of the so-called freedom of association and is protected by the German Constitution, specifically Article 9, Paragraph 3, which states that citizens have the right to form associations to protect and promote working conditions and economic conditions, and to strike for this purpose.

 

The term "associations" referred to in Article 9, Paragraph 3 of the Basic Law, means unions and employers, so in Germany, strikes are always led by unions and are not allowed for employees without union support.

 

During labor negotiations, unions can organize warning strikes to demonstrate the determination of union members to achieve their demands. "Real" strikes only occur after failed labor negotiations and, according to union statutes, require a vote of approval from over 75% of members.

 

During a strike, the work obligations of striking employees are suspended, and the obligation of employers to pay wages is also suspended. To increase members' willingness to strike, unions pay wages during the strike period, the amount depending on the current income of striking members, membership fees paid to the union, etc. However, strike wages usually cannot fully compensate for employees' income losses. If labor disputes last a long time, there is a risk of a decrease in strike participation rates because unions cannot force their members to participate in strikes.

 

In Germany, civil servants and judges have a duty of loyalty to their employers, so strikes are not allowed. If they participate in strikes, they will be subject to disciplinary measures such as salary deductions. However, whether the strike ban also applies to teachers with civil servant status is increasingly being questioned. The German Federal Constitutional Court recently ruled again that the strike ban is effective for teachers with civil servant status, and the European Court of Human Rights has not yet ruled on related appeals.

 

German government non-interference

Although the continuous strikes in the transportation sector have affected people's lives, most people still understand them. Irene Dingeldey, a social scientist at the University of Bremen's Institute for Work and Economy, pointed out that strikes are the only form of resistance employees have to emphasize their demands.

 

The German government also does not want to get involved in labor disputes but instead urges both sides to find solutions at the negotiating table, taking responsibility for the tens of thousands of affected daily passengers. Although the shares of Deutsche Bahn AG are wholly owned by the German federal government, its commercial operations are carried out by a subsidiary private company controlled by the state.

 

It is currently unclear which industries will hold strikes in 2024. According to records from the Institute of Economic and Social Sciences (WSI), involving nearly 12 million employees, labor negotiations between unions and employers under the German Trade Union Federation expired between December 2023 and December 2024. For example, labor negotiations in the metal and electrical industries, with over 3.6 million employees, will begin in September. Labor negotiations in the federal and local public service sectors (2.4 million employees) will expire at the end of 2024.