A breakthrough has been achieved in the weeks-long dispute over an arbitration board for the Zalando logistics center in Erfurt, which is threatened with closure.

The company announced upon request in Berlin that a settlement had been reached with the works council. He is ending the ongoing legal proceedings. Negotiations could begin as early as next week. This means that those involved are spared further legal disputes, said company spokesman Christian Schmidt.

The conciliation board was actually supposed to be heard before the state labor court on June 3rd. The works council has been contacted for a statement.

According to the Zalando spokesman, the settlement also stipulates that negotiations will initially take place outside of a conciliation body. If no agreement is reached by June 20th, the conciliation board would be set up on June 23rd. According to Schmidt, there is now a binding timetable for the talks. The aim is to keep the period of uncertainty for the workforce as short as possible.

The conciliation board was about a compromise on a balance of interests and a social plan. The labor court had decided to appoint her, and the works council appealed to the state labor court. Labor law provides for conciliation bodies to act as arbitration bodies in companies when the works council and the employer cannot agree on important issues.

Zalando wants to close the logistics center with which the online fashion retailer grew up in September. This means that around 2,700 employees would lose their jobs. The conflict has been simmering since the beginning of the year.

The Zalando share was temporarily 1.79 percent higher at 21.02 euros via XETRA.

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ERFURT/BERLIN (dpa-AFX)

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