Collective bargaining at the insolvent department store group Galeria Karstadt Kaufhof is due to begin this week. The Verdi union wants to bring the pay for around 17,400 employees back to the level of the collective bargaining agreement for the retail sector, as negotiator Marcel Schäuble announced on Wednesday. A first round of negotiations is to take place in Frankfurt this Friday.
A few days ago, the Essen district court opened insolvency proceedings under self-administration for the retail giant. It follows on from the previous protective shield procedure. Galeria submitted the insolvency plan with details of the restructuring concept to the court. So far, it is not publicly known how the 129 branches will continue. According to the administrator, there are still ongoing negotiations with the respective landlords. A creditors’ meeting is planned for March 27 in Essen, which will decide on the plan.
According to Verdi, the old management terminated the previous crisis collective agreement a few weeks before the bankruptcy, which required employees to waive considerable wages. Full-time employees have had to accept cuts of around 5,500 euros per year since the renovation in 2020 compared to the area tariff. The insolvency money that had been paid in the meantime expired in January. Verdi demands that Galeria must again recognize the area tariff and pay the corresponding salaries. “The people and their families at Galeria urgently need a living wage against the background of the massive price increases,” said Schäuble. (dpa)