Strikes in Germany paralyse public transport

Shiva Singh
Silhouettes of the Germans with the flag of Germany. Color vector stock illustration. People are citizens of Germany. The crowd is waving the flag. Concept of pride. Silhouette illustration

Belgium, (Brussels Morning Newspaper) Strikes in Germany have paralyzed public transport on Monday as members of Verdi and EVG unions staged walkouts at train and bus stations and airports.

Unions have been calling for higher wages for months, warning that rising inflation is eroding the standard of living, according to Reuters reporting on Monday.

Inflation in Germany reached 9.3% in February and has remained above the eurozone average in recent months, largely driven by energy prices as the country looks for alternatives to Russian energy imports.

Verdi represents approximately 2.5 million public sector employees while EVG represents roughly 230,000 employees of bus companies and the national railway company DB.

Both unions warned before the strike that wage growth was a “matter of survival” for their members, which DB described as “excessive and exaggerated.”

DB stressed that strikes were “groundless and unnecessary,” and noted that upping wages would push up fare prices and taxes. The company concluded that “millions of passengers who depend on buses and trains are suffering” from the strikes.

Verdi is demanding a wage increase of 10.5% while EVG wants 12%, with EVG announcing on Monday that further strikes will be organized if employers fail to make a viable offer.

Widespread protests

Public sector workers in other European countries are protesting against the declining standard of living and demanding higher wages as well.

Germany’s two largest airports suspended flights on Monday and DB canceled long-distance rail service due to walkouts on Monday.

Commerzbank chief economist Jörg Krämer pointed out that the effects of the 24-hour strike on Monday would be limited, but warned that protracted industrial action could have a significant economic impact.

“Economically, the losses are likely to be limited to the transportation industry because factories will continue to operate and many employees will be working from home,” he predicted.

Last week, Bundesbank head Joachim Nagel stressed the importance of avoiding a price-wage spiral. “Preventing inflation to become persistent via the labour market requires that employees accept sensible wage gains and that firms accept sensible profit margins,” he noted.

“Despite signs of second-round effects, we have not observed a destabilizing price-wage spiral in Germany so far,” Nagel concluded.

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Shiva is a professional digital marketer who covers the latest updates in the tech industry from across the globe. With an experience of over 5 years in the world of Information Technology, he likes to keep up with every major development and writes fact-based pieces backed by in-depth research.
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