The German trade union EVG has expressed concern, describing DB Cargo’s decision as a risky gamble with the company’s future.
Martin Burkert, EVG chairman, highlighted the inaction of previous board members in developing a profitable business model, which has led to sustained losses over several years. DB Cargo’s detractors suspect that the company has been surviving through loss-making service agreements, subsidized by its parent company DB Group and ultimately the German federal government.
Burkert also criticised the years of inactivity of the previous Cargo board. For more than a decade, the company has been in the red, which DB AG has compensated for by failing to develop a viable concept for a profitable business model. Now the EU Commission is threatening legal action.
“By cutting jobs, they want to save costs and appease the EU Commission. This is completely wrong and our colleagues will suffer. We don’t need DB Cargo to shrink, we need a future-oriented growth strategy,” says Burkert.
While DB Cargo has disputed the exact number of job cuts, estimating it to be between 300 and 450 at its Duisburg customer service centre alone, the union has criticized this move as a cost-saving measure aimed at appeasing the EC. Burkert emphasized the need for a growth-oriented strategy rather than downsizing, suggesting that the latter would only harm employees and hinder the company’s long-term prospects.
The potential job cuts in Duisburg, a critical operational hub for DB Cargo, have raised concerns among employees and local representatives.
“Until now, DB Cargo in Duisburg has been a sought-after and secure employer in the heart of the Ruhr region. This could change in the near future,” said Works Council member Kay Gottschall.
In addition to the 300 jobs at the Customer Service Centre, a further 150 jobs in Duisburg are at risk in the medium term.
“The fact that the entire process chain, which is currently successfully offered from a single source in Duisburg, is to be relocated to subsidiaries in Schkopau, Hamburg, Frankfurt and Gladbeck with different tasks is, in our view, a ruthless move that will not only harm customers, but above all our colleagues,” he stresses.
The impact of DB Cargo’s decision extends beyond the immediate job losses, with implications for the broader rail freight industry. There are concerns about the future viability of rail transportation, especially amidst a backdrop of declining modal share across Europe and the mothballing of electric locomotives due to high energy costs.