The wave of strikes in Germany continues unabated

Tension is growing in Germany due to ongoing protests by farmers, railway workers and carriers, and the government is on the defensive in the face of growing social dissatisfaction. It is estimated that the railway strike starting on Wednesday may cost the German economy up to half a billion euros.

The German political scene, which until recently seemed stable, is now struggling with a wave of dissatisfaction and frustration spreading across German society. The introduction of new regulations, especially those related to the transformation of the economy towards climate neutrality, is met with social resistance, and various professional groups are increasingly expressing their opposition.
The government of Olaf Scholz, which took power in December 2021, was also not prepared for the consequences of Russia’s war against Ukraine. The move away from Russian gas resulted in higher prices and an economic recession in Germany. Generous promises to maintain prosperity proved difficult to keep.

Carriers’ strike

One of the professional groups that decided to vent their dissatisfaction with the German government’s policy are carriers, who are experiencing a double financial burden due to higher road tolls and the new CO2 tax on fuel. The resulting additional state revenues are to be redirected to the development of railways instead of road infrastructure, which was met with protest from the BGL logistics association. On Thursday and Friday, January 18-19, carriers, drivers and forwarding companies demonstrated in Berlin their opposition to the actions of the politicians ruling the country. Just before the weekend, approximately 1.5 thousand participants, 620 trucks and 150 tractors gathered at the Brandenburg Gate and in the area of the center of the German capital, thus starting a huge rally. The main demands of the strikers included, among others: the German government’s withdrawal from increases in road tolls and CO2 emission rates, and better infrastructure for professional drivers. The spokesman for the Federal Association of Freight Transport and Logistics, Dirk Engelhardt, expressed dissatisfaction with the treatment of the transport industry as a “cash cow”.

German transport associations estimate the costs of toll increases in Germany at EUR 12,000 per truck. There are serious concerns about a possible wave of insolvencies and bankruptcies of small transport companies, which may not survive the increases before the market accepts new, higher freight prices, which may take from several to several months.  An analysis of freight prices on the Poland – Germany and Germany – Poland routes in transactions on Trans.eu showed an increase in prices by 1-5% in December 2023 (compared to the prices from November 2023). However, a further upward trend is expected.

Farmers’ strike

German farmers are protesting against planned cuts, including the abolition of the diesel tax relief for agriculture. Farmers’ protests also result from pressure for reforms regarding environmental protection and animal welfare. With new requirements comes frustration related to the lack of time and financial resources to implement changes, especially for smaller farms. The first wave of protests started on January 8, causing significant disruptions on German roads. The next one began on January 15, paralyzing traffic in Berlin and on access roads, as well as traffic jams at the borders. And although the German government has already withdrawn some planned cuts in the agricultural sector, announcing a gradual phase-out of the diesel tax credit for agriculture over the next three years, farmers are still dissatisfied and consider the measures taken to be insufficient. Joachim Rukwied, chairman of the German farmers’ association, announced further nationwide protests. He emphasized that farmers want to secure diesel subsidies before any discussion on deeper reforms. On Monday, January 22, 26 protests and 5 rallies took place across the country, including in Rostock, Neubrandenburg, Stralsund, Schwerin and Greifswald. Difficulties also appear on the Polish side of the border, in particular in the West Pomeranian Voivodeship, where a 10-kilometer section of the highway leading to the border crossing in Kołbaskowo was closed for several hours.

Railwaymen’s strike

The trade union of German machinists GDL joined the farmers’ strike very quickly, on January 10, starting a strike over wages. Only 1 out of 5 German long-distance trains set off on that day, and traffic was operated according to an emergency timetable. Trade unionists are demanding, among other things, pay rises and a reduction in the weekly working time of shift workers from 38 to 35 hours. Collective negotiations conducted between the GDL trade union and the management of Deutsche Bahn ended in failure, therefore the union chairman Claus Weselsky announced another, this time six-day strike, which began on Wednesday morning, January 24, and in freight transport – on Tuesday evening. Its costs for the German economy are estimated at approximately EUR 100 million per day.

Social dissatisfaction in Germany is growing

The wave of protests is growing in our western neighbor, and various professional groups are increasingly demanding their interests, which, according to forecasts, will cause further demonstrations and disruptions in the coming days. The cost will be losses to the economy, ongoing lockdowns, as well as disruptions not only to passenger transport, but also to freight transport. Another disturbing phenomenon is the polarization of society noticed by political observers and commentators, which benefits parties with extreme right-wing views.