The German rail and transport union, EVG, is escalating its criticism of DB Cargo’s CEO, Sigrid Nikutta, demanding her “prompt dismissal” according to a scathing letter sent to new Deutsche Bahn leadership. The letter, addressed to the newly appointed CEO Evelyn Palla and supervisory board chairman Werner Gatzer, paints a dire picture of the freight division’s trajectory under Nikutta’s leadership and accuses her of presiding over a strategy of “reckless shrinkage, belittlement and fragmentation.
The EVG’s deputy chair, Cosima Ingenschay, argues that DB Cargo’s future hinges on Nikutta’s departure. She alleges an alarming deficit of over €3.1 billion for DB Cargo since Nikutta took office – a figure the union attributes not to external factors like the pandemic or the war in Ukraine, but to a demonstrably flawed strategic approach. The letter charges Nikutta with hindering productivity gains through inaction, continually introducing new topics without completion and diverting “energy into headlines, not solutions.
Originally supportive of Nikutta’s appointment, the EVG now expresses deep disappointment, asserting that any positive results achieved have been reliant on one-off events and not indicative of a sustainable turnaround. The precarious situation is compounded by EU pressure, which prohibits further financial bailouts of DB Cargo by the parent company. The division is mandated to achieve profitability by 2026, or face the potential dismantling of the business.
A restructuring plan drafted by the consulting firm Oliver Wyman recommended a near-complete cessation of the single-wagon transport business – a proposal seemingly being stalled by Nikutta. The letter accuses the management board of delaying adjustments to the transformation program, crucial for assessing DB Cargo’s viability. Initial drafts of revised plans, reviewed only after repeated inquiries, suggest another round of widespread job cuts without a corresponding strategy for business development.
Ingenschay, who also holds a deputy chair position on the DB Cargo supervisory board – a role intensified by the recent vacancy of the board chairperson – emphasized her responsibility to critically examine the management’s actions. The union is facing a looming deadline of November 15th for constructive negotiations regarding further restructuring measures, a condition for securing new credit lines. Failure to deliver on a concrete plan for single-wagon transport, which has been delayed since the end of July, risks jeopardizing these crucial financial supports. The tone of the letter is stark, asserting that “I cannot close my eyes” to the apparent mismanagement undermining DB Cargo’s future.
