#German Railways: Stakeholders Adopt Measures against #Covid-19 Impact

Representatives of the German Railways (DB), the production council of the DB, the country’s Ministry of Transport, the EVG union and the AGV MOVE employers’ association signed a joint action agreement listing measures to address the economic consequences of the coronavirus pandemic.

According to the agreement, jobs in DB units will be retained, and the recruitment of new employees will continue.

DBs suffer significant losses due to a fall in traffic due to a pandemic and therefore will receive government support. The government guarantees the allocation of previously planned investments in the modernization of the network in accordance with the agreement on performance targets and financing of the LuFV III railways, and will also make efforts to increase the allowable upper limit of debt and increase the group’s authorized capital by an estimated amount to EUR 8.4 billion.

German Railways, in turn, undertakes to adapt the organizational structure in order to increase the efficiency of the concern. DB board members and top managers of subsidiaries of the concern will not receive bonuses for 2020, which will result in savings of more than 100 million euros.

Finally, EVG and other collective bargaining partners recognize the need for joint and solidarity action to deal with the crisis. A new package of agreements will be prepared that will save jobs and stabilize the financial position of the concern.

The EVG union unites approximately 200 thousand workers in the transport industry, mainly the railway. Another industry-leading GDL locomotive trade union has refused to sign the agreement. The association of private passenger railway operators Mofair, which believes that it is necessary to support the entire industry, not only DB, also opposed (photo: DB).

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