Negotiations in Germany between the unions and government representatives have not yielded a result, with both sides declaring that the talks have failed. As per German law, they must now nominate a conciliation committee/jury to mediate between the parties. They have three weeks to mediate an agreement, during which time no strike action is permitted and work will continue unobstructed.
What Happens Next?
If the conciliation committee is not successful within the allotted time and the mediation fails, the union has to arrange a “Strike Ballot” where all union members have to vote to strike or not. This three-week process means Germany has until May 15, 2023 before another strike takes place. However, if that date passes without an agreement, we expect to see huge strikes again.
Analysts predict that during this period (May 15–June 15), we will see a staggering number of strikes heavily impacting our supply chains. This gives every customer six weeks to prepare themselves for the next wave of disruption, as it seems inevitable with both parties slow or even unwilling to make compromises. The mediation will be difficult, time consuming, and perhaps even unsuccessful. Many expect that there is about a 70% chance that the negotiations will fail. Because these unions represent highway, seaport, airport, government employees, and rail car drivers, it is likely that any strike will cause significant disruptions to public and freight transportation in Germany.
TOC Logistics is developing action plans to keep your cargo moving in the event of a disruption caused by the situation in Germany. We will continue to update our customers as more information becomes available, and we urge everyone to contact your representative to find out the ways you can build resilience into your supply chain and be prepared to weather storms alongside us.