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DB Cargo Reverses Decision to Drop Combined Transport Operations, Saving 2,000 Jobs

DB Cargo Reverses Decision to Drop Combined Transport Operations, Saving 2,000 Jobs
photo: Steve Wiktor / Deutsche Bahn AG/DB Cargo EuroDual locomotive
05 / 07 / 2024

DB Cargo has reversed its decision to abandon combined transport operations, supposedly saving up to 2,000 jobs at the company.

This decision comes after a heated conflict between the freight operator and the trade union EVG. DB Cargo initially aimed to improve its competitiveness by transferring combined transport operations to companies in which it holds shares, but intense negotiations with EVG led to a change in plans.

In February, DB Cargo’s CEO Sigrid Nikutta announced intentions to drop combined transport operations to improve the loss-making company’s finances. The proposed plan would have transferred operations to companies such as Mitteldeutsche Eisenbahn, Kombiverkehr, TFG Transfracht, and RBH Logistics, potentially resulting in significant job losses. The plan faced strong opposition from employee representatives and trade unions, leading to protests and a standoff with EVG.

The trade union EVG managed to persuade DB Cargo to retain its combined transport operations, thereby saving the threatened jobs. While DB Cargo has not provided specific reasons for the reversal, it is speculated that EVG's willingness to cooperate on making the company more agile influenced the decision. "Securing jobs is to be achieved, among other things, through the implementation of extensive measures to increase competitiveness and productivity," stated DB Cargo and EVG in a joint announcement.

The restructuring talks aimed at enhancing DB Cargo’s flexibility and competitiveness are reportedly still ongoing.

Source: EVG, RailFreight

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