The latest round of contract talks between the German port employers, represented by the Central Association of German Seaport Companies (ZDS), and the German labor union ver.di has ended with no agreement.
At issue is how the contract should include wage increases when inflation is a question mark.
Germany, which is Europe’s largest economy, is facing skyrocketing inflation from food to energy as a result of Russia’s war on Ukraine. According to the country’s trade data, the main German export is motor vehicles and auto parts, which represented 15.4% of its exports. Machinery (14.2%) and chemical products (10%) ranked second and third. Ikea furniture and other household goods are also exported.
The union is calling for a yearly automatic inflation adjustment built into a renewed collective agreement for its workers at the 58 ports and terminals.
Maya Schwiegershausen-Güth, head of ver.di’s maritime section, said in press reports: “Rising prices for essential living expenses such as energy and food have become an unsustainable burden on German workers, especially for those lower-paid workers.” She added that the employers, represented by ZDS, have so far rejected the principle of inflation protection in talks with the union.
“These port companies plan to leave their staff alone to deal with the consequences of rising prices. They are willing to see dockers’ wages go backward, eaten away by inflation. We cannot accept this, especially after all that dockworkers have done for the employers and the common good,” she pointed out.
“We have repeatedly improved our offers and responded to ver.di’s demands,” ZDS negotiator Ulrike Riedel said on the ZDS website. “There was no willingness to compromise from ver.di. Now an offer of up to 12.5% is on the table. This also includes a permanent wage increase of up to 8% retroactively to [Jan. 6]. With this offer, we are above the very high inflation rate and far above what ver.di and other unions are demanding and concluding in other current negotiations. We cannot afford more than that without endangering the survival of companies. A further escalation is completely disproportionate in view of this offer and harms not only us, but Germany as a whole. We urgently need a conciliation procedure.”
The inflation gauge presented by ver.di has the support of the ITF and ETF dockworkers’ union. Collectively, those unions represent 500,000 workers.
While no strikes have been announced or expected this week, sources told American Shipper they cannot be ruled out in the future. No further talks are currently scheduled. If the impasse continues, arbitration could be called, which is a common dispute resolution procedure in Germany. If that happens, strikes would then be ruled out.
