| July 14TH, 2022

Verdi Union strike on Germany’s ports until Saturday July 16th

Verdi Union, the United Services Union in Germany has called out on strike, a 48-hour strike, that should last until Saturday. The workers are claiming a yearly automatic inflation adjustment built into their renewed contracts, and the first offer received was rejected. 

The first strike in 40 years in Germany took place on June 23rd, including 12,000 workers and impacting the ports of Hamburg, Emden, Bremerhaven, Bremen, Brake, and Wilhelmshaven. Following port congestion and disrupted supply chains, these strikes hit ports where it hurts the most income and trade. Restricted capacities were faced by such ports again on July 14th, for the recent 48-hour strike, affecting the same ports as before. 

Such a rise in inflation in Europe’s largest economy comes from food and energy price increases due to Russia’s war on Ukraine. According to CNBC, the Verdi Union already rejected an offer made by the Central Association of German Seaport Companies, which was above the inflation rate. The labor force is needed at these desperate times and the only way to end these strikes at the moment is by making more attractive offers. According to the Central Association of German Seaport Companies’ website, they had to make an offer at 12.5% above the inflation rate, including a permanent increase on wage pay for workers of 8% in the coming 6 months. 

Impacting various industries and various markets at a time, these strikes will ultimately challenge companies into locating their cargo, allocating their shipments in other container vessels, and praying they can find empty containers.

What do you think should be the counteroffer from the Association of Seaports, and do you think these strikes will stop from the labor union?

Tags: Germany, Verdi Union, economy , ports,


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