The growing congestion at ports in Germany and the Netherlands, which could delay car and furniture shipments to the U.S. for weeks, shows no signs of clearing up as the latest round of labor negotiations between the Central Association of German Seaport Companies (ZDS) and ver.di, the German labor union, ended with no agreement. A major sticking point is linking dock worker pay to inflation.
Germany, Europe’s largest economy, is facing skyrocketing inflation, with food and energy inflation made worse as a result of Russia’s war on Ukraine. This inflation is at the heart of the negotiation impasse. The union is calling for a yearly automatic inflation adjustment built into a renewed collective agreement for their workers at the 58 ports and terminals. ZDS says its offer is above the inflation rate, but the union has rejected the offer.
“Rising prices for essential living expenses such as energy and food have become an unsustainable burden on German workers, especially for those lower paid workers,” the head of ver.di’s maritime section, Maya Schwiegershausen-Güth, said in a statement to the press. She added that the employers, represented by the Central Association of German Seaport Companies (ZDS), have so far rejected the principle of inflation protection in talks with the union.
“These port companies plan to leave their staff alone to deal with the consequences of rising prices. They are willing to see dockers’ wages go backward, eaten away by inflation. We cannot accept…