German Ports See Strikes After ‘Completely Inadequate’ Contract Offer
As ports worldwide feel the heat of congestion, several of Germany’s docks are seeing work stoppages as more than 11,500 union workers call for a new collective bargaining agreement.
Strikes are taking place at five ports across Germany Monday, including the Port of Hamburg, the Port of Bremen, as well as gateways in Bremerhaven, Brake and Emden amid ongoing contract negotiations between trade union Ver.di (United Services Union) and the Central Association of German Seaport Companies (ZDS).
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The third round of negotiations between the parties began Monday morning, and will go through Tuesday. Container pickup and drop-off will not be possible during this time, and rail departures will also be canceled or postponed.
A second round of talks took place on June 6, but the nearly 2-million-member union said the discussions did not produce any results.
In the days that followed, Ver.di employees at individual seaports held daily “warning strikes.” The first was the employees in the Port of Hamburg on June 7, followed by those in Bremen (June 11), Bremerhaven (June 12) and Emden (June 14).
Ver.di is demanding a three-euro ($3.22) increase in hourly wages for dockworkers of as of June 1, as well as a corresponding increase in shift allowances, which are the equivalent to American overtime hourly bonuses. The union says it wants a 12-month “catch-up” for missing increases in shift allowances going back to the 2022 collective agreement.
The ZDS offer includes a 2.5 percent wage hike starting June 1, with increased shift allowances.
“The offer that the employers have presented is completely inadequate,” said ver.di negotiator Maren Ulbrich in a statement. “It does not mean a real increase in wages for the employees and the social component is also completely inadequate. This shows no respect for the dockworkers and is far too little. The employees need a significant increase in their wages in order to be able to pay the increased cost of living. With their inadequate offer, the employers have now provoked strikes.”
The strikes in Hamburg began Monday at 5 a.m. local time and, depending on the port location, will last for approximately 24 or 48 hours, until Monday or Tuesday evening.
“This will have widespread implications on our network, with multiple vessels already planned to be worked today/tomorrow,” said Maersk in a customer advisory Monday. “With current outlook on the vessels, we do expect a knock-on effect for all vessels. Consequently, this will cause further delays!”
Maersk is taking additional measures including diverting ships from the affected ports, or imposing “move count restrictions,” which limit the total number of times that workers lift containers on and off a vessel. The measures are being put in place to minimize the impact on onwards vessel schedules, and potential cargo delays.
Once terminals resume operations, there is a possibility of congestion for container delivery and pickup, Maersk said. As a result, the ocean carrier is asking customers to plan their inland haulage accordingly.
If no deal is reached within the third round of talks and more strikes take place beyond Tuesday, cargo could be shifted to larger Northern European ports including Rotterdam and Antwerp, risking potential capacity concerns at those gateways.
Strike action at the German ports has hampered operations at the hubs for multiple days at a time in recent years. Two years ago, collective bargaining talks for Ver.di workers were accompanied by a series of warning strikes that brought the ports to a standstill for roughly 80 hours.
“The employees are disappointed and outraged that the employers have not shown any willingness to compromise, but have only pointed to their own difficult economic situation and the competition from foreign ports. In doing so, they have not shown any appreciation for the work of the employees,” said Ulbrich, who pointed out that competitive pressure and balance sheet problems must not be carried out on the backs of port employees.
Ulbrich also emphasized the importance of lower wage groups receiving “significantly more income” as part of a new deal, noting that the “inflation of recent years has hit them particularly hard.” The wage gaps between the various groups must be reduced, she argued.
As the German port work stoppages rage on, France’s ports already endured several instances of labor action this month. Dockworkers have engaged in several one-day strikes, as well as numerous four-hour work stoppages, in protest over pension reform that increased the statutory retirement age.
While additional strikes were initially planned for June 21 and June 25, those actions have been cancelled following the announcement of parliamentary elections in France.
The dissolution of parliament means that the unions no longer have a mediator to negotiate their demands. As a result, the union representing port workers decided to suspend the strikes until September.