Union Warns of Thousands of Potential Losses
Economy / Finance

Union Warns of Thousands of Potential Losses

Concerns are mounting over potential job losses at DB Cargo, Germany’s largest freight rail operator, as two consulting firms prepare to present proposals regarding the future of its single-wagon transport division. The Eisenbahngewerkschaft EVG, a railway union, is warning that restructuring plans could lead to the elimination of between 4,000 and 8,000 positions.

Cosima Ingenschay, deputy chair of the EVG, voiced apprehension, highlighting the potential for a “dramatic blow” following previous rounds of cuts. The proposed changes, detailed in unpublished reports initially covered by the “Handelsblatt”, are slated for presentation at the end of the week.

The union sharply criticized plans to reduce single-wagon transport, deeming it “the backbone of DB Cargo”. They argue that downsizing this vital service will inevitably result in significant job losses and a dramatic increase in truck traffic – potentially adding around 40,000 trucks to roadways. The EVG questions whether such outcomes align with the objectives of DB Cargo’s ownership. Federal government funding for the sector is, the union points out, specifically designed to support its broader economic function.

To mitigate potential job losses and maintain the service’s viability, the EVG is proposing a restructuring plan that would integrate the currently loss-making single-wagon transport division into the DB Infrastruktur-Tochter InfraGo. Under this proposal, the service would be declared a non-profit entity, thereby removing pressure to generate profit. Currently, InfraGo operates under a “common-good oriented” model and still generates returns.