March 28, 2012

• Happy Birthday! German Airport Labor Strike

  Germany: Strike by ground staff at airports causes significant disruption to flights across country

  An industrial action on 27 March by the ground staff affiliated to the ver.di public workers’ union resulted in the cancellation of hundreds of domestic and international flights at airports across the country. Around 450 flights were cancelled at Frankfurt Airport ( FRA, Hesse state), while the national carrier Lufthansa cancelled 400 flights on the day. The walkout also affected public sector services, including public transport. Fresh negotiations between the union and the authorities are scheduled for 28-29 March in Potsdam (Brandenburg). The union has threatened an indefinite strike in April if the authorities fail to address its demands and mediations fail. However, the union has stated that aviation strikes will be avoided during Easter holidays.

  Comment and Analysis

  Should negotiations fail to reach a resolution, further strikes and protests by public sector employees could be expected. The widespread impact of recent strikes indicates that disruption to flights, public transport and businesses can be expected in affected states during any strikes. Public transport strike in particular can be expected to cause an increased demand for alternative means of transport, such as taxis and rental vehicles, which could limit their availability. Although any associated demonstrations are likely to pass off peacefully, they may cause localised disruption.

  Ver.di is demanding that the workers’ salaries rise in line with the rate of inflation. The union is demanding a 6.5% increase in salaries, while employers are offering a 3.3% raise. Around 80,000 workers on 21 March observed walkouts over the issue in North Rhine-Westphalia and Berlin. Related strikes have been held in recent days in the states of Saxony-Anhalt, Thuringia, Saxony, Mecklenburg-Vorpommern, Hesse, Rheinland-Pfalz, Hamburg, Lower Saxony and Baden-Württemberg, disrupting public transport in major cities.

  Travel Advice

  Avoid all associated protests as a routine precaution.
  Monitor the local media and our website for further information on the strikes.
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  Commentary: wack wack wacky. Entitlement to a 6.6% cost of living adjustment would be nice to count on in perpetuity. This strike hopefully resolves soon.

  On a separate note Apple AAPL trades at $620.

  • 10:23 AM
  • 1 Comment