From the point of view of labor market experts, the employees of Galeria Karstadt Kaufhof threatened by branch closures have better chances of finding new jobs than those affected by previous mass layoffs. “For older unemployed people, the chances have improved significantly,” Enzo Weber, head of research at the Nuremberg Institute for Labor Market and Occupational Research (IAB), told the news magazine “Spiegel” on Friday.
Galeria plans to close 47 of its 129 branches. According to the Verdi union, around 5,000 employees could be affected by the closures. The fact that this is happening almost simultaneously is certainly a problem, said Weber. “In the case of Galeria, however, not in one place, but spread over many cities.”
It is now crucial that they receive suitable further training, advice and mediation as quickly as possible in the planned transfer company. The IAB economist advises openness to other sectors and professions as well: “It is important to look ahead, the job market after Corona offers new opportunities.”
However, some of the Galeria employees, who are older and receive comparatively high salaries, would have to accept compromises for a new job. “But the chances for older unemployed people have also improved significantly – they are now four times as high as they were at the end of the 1990s,” says Weber.
At the end of October, the department store group had to seek rescue in a protective shield insolvency procedure. At the time, CEO Miguel Müllenbach named the exploding energy prices and the slump in consumption in Germany as the reason for the threatening situation of the company. However, the general works council also blamed management errors for the group’s crisis.
Galeria announced the closure of 52 branches on Monday. Thanks to further concessions from the landlords, the department stores in Bayreuth, Erlangen, Oldenburg, Rostock and Leipzig were retained. (dpa)