At the ailing department store chain Galeria, Verdi and the management are ostensibly arguing about the wages of the employees. It is not yet finally clear how difficult the renewed renovation will be.
In the collective bargaining for the approximately 17,400 remaining employees of the insolvent department store group Galeria Karstadt Kaufhof, difficult further talks are emerging. The demands of the Verdi union were taken note of, the company informed its employees on Friday after the first round of negotiations. According to the first assessment, they cannot be reconciled with the submitted insolvency plan. Conversions and heavy investments are pending, so that Galeria will not be profitable again for three years at the earliest.
Verdi negotiator Marcel Schäuble criticized the management’s approach: “During the negotiations, the Federal Tariff Commission experienced a management that has no other answers for the future of the department stores than saving on the employees.” Another austerity program on the backs of the employees cannot be made. “Because wage cuts have never saved jobs.” The employees had already waived their salary after the first bankruptcy in 2020. According to Verdi, Galeria only wants to continue to pay the reduced salaries. The parties want to continue their talks on February 22 in Frankfurt.
The collective bargaining talks are taking place against the background that further deep cuts are imminent at the insolvent department store group in self-administration. A few days ago, the district court in Essen opened new insolvency proceedings for the state-backed retail giant. Galeria submitted an insolvency plan with details of the restructuring concept to the court.
Reports of numerous branch closures
According to the company, it is still unclear how many of the 129 branches will continue. According to media reports, up to 81 locations are to be closed or sold to interested parties such as the textile chain Aachener. To this end, negotiations are underway with landlords of the properties as well as potential buyers of individual branches. Personnel are also to be reduced in branches to be continued.
The situation at the company is therefore coming to a head. Despite the imponderables, a reconciliation of interests has already been negotiated with the works council for those employees who have to leave Galeria. Severance payments of up to 7,500 euros and the start of a transfer company to prepare employees for a new career are planned. A creditors’ meeting is planned for March 27 in Essen, which will decide on the overall plan.
Source: Stern
