German Airports Paralyzed by Strikes for More Pay
By Andreas Cremer and Rainer Buergin
March 5 (Bloomberg) -- Germany's main airports including Frankfurt and Munich were paralyzed this morning as baggage handlers and firefighters joined a strike to stiffen public- sector workers' biggest pay demand in 16 years.
Deutsche Lufthansa AG, Europe's second-largest airline, canceled 301 flights after the labor union Ver.di called on staff to walk out at 8 of the country's 10 busiest airports. Air Berlin Plc, Europe's third-largest discount carrier, scrapped 32 flights. The strikes come a day before negotiations between union and government officials.
``For years there's been less money,'' Ver.di Chairman Frank Bsirske said on ARD television. ``It looks like employers won't make a new offer tomorrow. People are fed up. That's got to end.''
Talks that began Jan. 10 have stalled after Ver.di, Germany's second-largest union, called for an 8 percent raise, the most since 1992, for 1.3 million workers. The government has offered 5 percent over 24 months for a longer working week and an incentive bonus. Transport workers in Berlin today also shut down the city's subway, bus and tram services.
Garbage collection, child care and some hospitals were also disrupted today. Wages grew more slowly than consumer prices in the past four years, the DGB German Union Federation said.
Air Hub
About one in six of Lufthansa's European and domestic flights were canceled, said spokesman Jan Baerwalde said. Frankfurt and Munich were hit worst and about 18,500 passengers were affected.
TUI AG's TUIfly charter airline said flights were delayed as much as four hours. A United Airlines Inc. flight from New York to Hamburg was diverted to Copenhagen, Ver.di's Dietmar Stretz said.
``We were especially affected in Hanover and Hamburg because the fire fighters were on strike there'' which forced cancellations, Air Berlin spokeswoman Nadine Bernhardt said.
Hanover Airport, servicing traffic to CeBIT, the world's largest computer fair, was ``completely paralyzed'' until 10:30 a.m. after 250 workers including security staff, technicians, police officers, luggage inspectors and bus drivers walked off their shifts at 5 a.m.
``We're totally serious,'' said Guenter Isemeyer, spokesman for Ver.di in North Rhine-Westphalia, where four airports were affected. An escalation ``is evidently being desired if employers fail to present a tolerable offer.''
Strikes Over
Eight of Germany's 10 busiest airports were hit by disruption today, according to Ver.di. Only Tegel and Schoenefeld in Berlin were spared. The strikes all ended by noon.
``This will turn into a problem for Lufthansa and Fraport if the strikes drag on for days or weeks,'' Jochen Rothenbacher, a Frankfurt-based analyst at Equinet AG, said today.
German law requires employers and unions to exhaust pay talks before union members can approve an all-out strike. If the talks starting tomorrow, the fifth and last session so far scheduled, fail, both sides will likely ask mediators to break the deadlock, Ver.di spokeswoman Cornelia Hass said yesterday by phone.
The DBB civil servants' union, which conducts the talks with Ver.di, called on employers today to double their pay proposal ``and offer 5 percent for 2008 instead of 2.5 percent,'' Frank Stoehr, the DBB's chief negotiator, said in an e-mailed statement. ``This could inject fresh momentum into the talks.''
``We're confident we'll be able to reach a result in the next round of talks that will correspond with economic conditions and workers' interests,'' Stefan Paris, spokesman for Interior Minister Wolfgang Schaeuble, the government's chief negotiator, said in an interview yesterday, without being more specific.
`Rough Ride'
``I'm concerned that we're looking at potential stagflation as high wages chase rising prices,'' said Elga Bartsch, an economist at Morgan Stanley and Co. in London. ``Germany is probably in for a rough ride this spring. Not much fun if you're stuck on a bleak train platform.''
Separately, Ver.di, which counts about 2.3 million members, today began open-ended stoppages on public transport in Berlin to support a claim that employers say would amount to 12 percent more pay for recent hires. Bus, tram and metro services face unlimited stoppages over the next nine days to press employers to increase a 6 percent pay offer.
Berlin's subways, busses and trams came ``almost to a complete standstill,'' said Klaus Wazlak, a spokesman for the BVG public transportation service. ``We're running 70-80 busses as an emergency service, and they're very full. Passengers are coping well, but the mood can easily flip after three or four days.''
Commuters in the capital had to choose between using S-Bahn and other commuter rail services run by Deutsche Bahn AG or driving to work on snow-covered roads.
``More than 50 passengers were queuing up for cabs at Spandau train station this morning,'' said Berlin cab driver Volkmar Richter. ``Normally, you get no passengers there but at least 10 cabs looking for business.''
Berlin's transport situation could worsen next week, as the GDL train drivers' union has said it will strike if Deutsche Bahn fails to sign a pay agreement that was reached a month ago.
``Things look bad for Monday,'' said Schoebel.
Ver.di expects more than 70,000 workers alone in North Rhine-Westphalia, the most populous of Germany's 16 states, to join today's token strikes. The union's case is backed by Germans with 68 percent saying public staff is underpaid, according to a survey of 1,000 people by Infratest.
Last Updated: March 5, 2008 10:16 EST
By Andreas Cremer and Rainer Buergin
March 5 (Bloomberg) -- Germany's main airports including Frankfurt and Munich were paralyzed this morning as baggage handlers and firefighters joined a strike to stiffen public- sector workers' biggest pay demand in 16 years.
Deutsche Lufthansa AG, Europe's second-largest airline, canceled 301 flights after the labor union Ver.di called on staff to walk out at 8 of the country's 10 busiest airports. Air Berlin Plc, Europe's third-largest discount carrier, scrapped 32 flights. The strikes come a day before negotiations between union and government officials.
``For years there's been less money,'' Ver.di Chairman Frank Bsirske said on ARD television. ``It looks like employers won't make a new offer tomorrow. People are fed up. That's got to end.''
Talks that began Jan. 10 have stalled after Ver.di, Germany's second-largest union, called for an 8 percent raise, the most since 1992, for 1.3 million workers. The government has offered 5 percent over 24 months for a longer working week and an incentive bonus. Transport workers in Berlin today also shut down the city's subway, bus and tram services.
Garbage collection, child care and some hospitals were also disrupted today. Wages grew more slowly than consumer prices in the past four years, the DGB German Union Federation said.
Air Hub
About one in six of Lufthansa's European and domestic flights were canceled, said spokesman Jan Baerwalde said. Frankfurt and Munich were hit worst and about 18,500 passengers were affected.
TUI AG's TUIfly charter airline said flights were delayed as much as four hours. A United Airlines Inc. flight from New York to Hamburg was diverted to Copenhagen, Ver.di's Dietmar Stretz said.
``We were especially affected in Hanover and Hamburg because the fire fighters were on strike there'' which forced cancellations, Air Berlin spokeswoman Nadine Bernhardt said.
Hanover Airport, servicing traffic to CeBIT, the world's largest computer fair, was ``completely paralyzed'' until 10:30 a.m. after 250 workers including security staff, technicians, police officers, luggage inspectors and bus drivers walked off their shifts at 5 a.m.
``We're totally serious,'' said Guenter Isemeyer, spokesman for Ver.di in North Rhine-Westphalia, where four airports were affected. An escalation ``is evidently being desired if employers fail to present a tolerable offer.''
Strikes Over
Eight of Germany's 10 busiest airports were hit by disruption today, according to Ver.di. Only Tegel and Schoenefeld in Berlin were spared. The strikes all ended by noon.
``This will turn into a problem for Lufthansa and Fraport if the strikes drag on for days or weeks,'' Jochen Rothenbacher, a Frankfurt-based analyst at Equinet AG, said today.
German law requires employers and unions to exhaust pay talks before union members can approve an all-out strike. If the talks starting tomorrow, the fifth and last session so far scheduled, fail, both sides will likely ask mediators to break the deadlock, Ver.di spokeswoman Cornelia Hass said yesterday by phone.
The DBB civil servants' union, which conducts the talks with Ver.di, called on employers today to double their pay proposal ``and offer 5 percent for 2008 instead of 2.5 percent,'' Frank Stoehr, the DBB's chief negotiator, said in an e-mailed statement. ``This could inject fresh momentum into the talks.''
``We're confident we'll be able to reach a result in the next round of talks that will correspond with economic conditions and workers' interests,'' Stefan Paris, spokesman for Interior Minister Wolfgang Schaeuble, the government's chief negotiator, said in an interview yesterday, without being more specific.
`Rough Ride'
``I'm concerned that we're looking at potential stagflation as high wages chase rising prices,'' said Elga Bartsch, an economist at Morgan Stanley and Co. in London. ``Germany is probably in for a rough ride this spring. Not much fun if you're stuck on a bleak train platform.''
Separately, Ver.di, which counts about 2.3 million members, today began open-ended stoppages on public transport in Berlin to support a claim that employers say would amount to 12 percent more pay for recent hires. Bus, tram and metro services face unlimited stoppages over the next nine days to press employers to increase a 6 percent pay offer.
Berlin's subways, busses and trams came ``almost to a complete standstill,'' said Klaus Wazlak, a spokesman for the BVG public transportation service. ``We're running 70-80 busses as an emergency service, and they're very full. Passengers are coping well, but the mood can easily flip after three or four days.''
Commuters in the capital had to choose between using S-Bahn and other commuter rail services run by Deutsche Bahn AG or driving to work on snow-covered roads.
``More than 50 passengers were queuing up for cabs at Spandau train station this morning,'' said Berlin cab driver Volkmar Richter. ``Normally, you get no passengers there but at least 10 cabs looking for business.''
Berlin's transport situation could worsen next week, as the GDL train drivers' union has said it will strike if Deutsche Bahn fails to sign a pay agreement that was reached a month ago.
``Things look bad for Monday,'' said Schoebel.
Ver.di expects more than 70,000 workers alone in North Rhine-Westphalia, the most populous of Germany's 16 states, to join today's token strikes. The union's case is backed by Germans with 68 percent saying public staff is underpaid, according to a survey of 1,000 people by Infratest.
Last Updated: March 5, 2008 10:16 EST