DB Cargo braces for significant workforce reduction, as per EVG's warning
DB Cargo is planning to reduce and potentially stop single wagon traffic, a move that could lead to significant job cuts, according to the Railway and Transport Union (EVG). The union is advocating for the expansion of single wagon traffic instead, despite its current loss-making status.
Cosima Ingenschay, deputy chairwoman of the EVG, has emphasized the importance of single wagon traffic for DB Cargo. She argues that it is the backbone of the company and thousands of jobs secured by collective agreements could be lost if it is dismantled. Ingenschay also pointed out that an additional 40,000 trucks would congest roads if single wagon traffic is eliminated.
The EVG's proposal involves transferring single wagon traffic to the roof of the DB infrastructure subsidiary InfraGo and declaring it as non-profit. This would mean that single wagon traffic would no longer have to generate a profit. However, the EVG's proposal does not address the potential job cuts from the studies presented by two unnamed consulting firms, which are expected to be presented to DB Cargo by the end of this week.
Ingenschay criticized DB Cargo's focus on transformation towards more market-driven and efficient operations, which includes reducing less profitable services like single wagon traffic. She argued that with more investment and market orientation, this service can become viable and contribute to the future of rail freight.
The future of single wagon traffic at DB Cargo is under focus due to potential restructuring. Ingenschay stated that dismantling single wagon traffic could not be in the interest of the owner. She also pointed out that DB InfraGo is currently still making profits and is not yet recognized as non-profit.
The studies being prepared by these consulting firms are expected to contain concrete figures on potential job cuts. Up to 8,000 jobs could be lost due to planned restructuring at DB Cargo, according to the EVG. However, the specific job cut figures from the studies have not yet been made public.
Ingenschay argued that the promotion of single wagon traffic in the federal budget serves to fulfill its macroeconomic purpose. She stated that these potential job cuts would be another dramatic blow, following previous cuts. The EVG is expressing concerns about the future of single wagon traffic at DB Cargo and is urging the company to reconsider its plans.
- Cosima Ingenschay, deputy chairwoman of the EVG, asserted that single wagon traffic plays a crucial role in the company's business and finance, as it secures thousands of jobs that are protected by collective agreements, and eliminating it could lead to significant job losses in the industry.
- Ingenschay further noted that if single wagon traffic is abolished, it could result in an increase in road congestion due to the addition of 40,000 trucks in the transportation sector, which could have broader implications for business operations and the overall economy.
