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Deutsche Bahn faces union opposition in DB Schenker sale vote

Deutsche Bahn's supervisory board will vote on 2 October to sell its logistics subsidiary DB Schenker to Danish rival DSV for €14.3 billion, despite opposition from the rail and transport union EVG.

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On Wednesday, 2nd October, the Deutsche Bahn (DB) supervisory board is expected to vote on the proposed sale of its logistics subsidiary, DB Schenker, to Danish competitor DSV. However, the sale is facing resistance from the railway and transport union EVG, potentially jeopardising the transaction.

According to information from Deutsche Presse-Agentur (DPA) and reports from the Frankfurter Allgemeine Zeitung, the EVG is mobilising efforts to block the sale. The union argues that the divestment of one of Deutsche Bahn’s few profitable units would negatively affect both employees and the long-term stability of the group. DB Schenker posted an operating profit (EBIT) of €520 million in the first half of 2023, contributing to the company’s partial recovery from the financial impact of the COVID-19 pandemic.

The EVG, representing half of the 20-member supervisory board, would need to rally additional support to prevent the sale. The board includes representatives from the German Train Drivers’ Union (GDL) and several government-appointed members. The GDL’s position remains uncertain at this stage. Should the vote be tied, the chairman of the supervisory board, Werner Gatzer, could exercise his double voting rights to finalise the decision in favour of the sale.

Employee representatives within DB Schenker have expressed concerns about the potential impact of the sale to DSV, fearing substantial job cuts, notes dpa. These representatives reportedly would have preferred a sale to private equity investor CVC Capital Partners, who had also expressed interest in acquiring the logistics arm. Despite these concerns, the final decision rests with the supervisory board, which will weigh both financial and employment factors in its upcoming vote.

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