News / German dock workers mull 'final offer' from port operators, after 'difficult' talks

Photo 190824924 | Container Ship © Frank Harms | Dreamstime.com

The Central Assocation of German Seaport Operators (ZDS) has submitted a final offer to port workers associated with trade union ver.di, but if they reject the offer, further port strikes could coincide with the traditional peak season.

After a “difficult” fourth round of negotiations in Bremen late last week, ZDS submitted its final offer to ver.di members, comprising two contract variants with different durations.

Variant one would last 12 months, and variant two 16 months, while each offers different wage increases and bonuses, among other components.

Ver.di has launched a member survey to evaluate the offer.

But it said ZDS’s offer “fell short of expectations”, although it had taken on some key demands, such as a “fixed amount as a social component and an increase in bonuses for the burden of shift work”.

Ver.di negotiator Maren Ulbrich said: “Now it’s up to the members. The ver.di Federal Tariff Commission has decided to present the offer to the members so that everyone can form their own opinion.”

In the week before the fourth round of negotiations, there had been full-shift ‘warning’ strikes on several days at the ports of Hamburg, Bremen, Bremerhaven, Wilhelmshaven, Emden and Brake.

During the strike period, between 9 July and 12 July, the average duration of ocean shipments at Hamburg, Bremen and Wilhelmshaven increased by 61% year on year, while late shipments increased 45%, according to FourKites.

Further, the supply chain visibility platform found average dwell time at the major German ports increased 9% during the period.

Mike DeAngelis, senior director of international solutions at FourKites, said: “If members of  Ver.di and its leaders cannot reach agreement, the worst-case scenario would mean 11,000 port workers go on strike.

“The timing coincides with peak shipping season, potentially causing inventory shortages for retailers preparing for year-end sales and hampering just-in-time manufacturing processes across Europe,” he warned.

And port strikes could severely disrupt German exports, particularly from the automotive and machinery sectors.

Germany is also Europe’s biggest importer, handling some 20% of total imports in 2023, according to the EC’s Eurostat database.

“Supply chain bottlenecks could force companies to seek costlier alternatives, such as air freight, or rerouting through Rotterdam or Antwerp, leading to increased prices for consumers and eroding profit margins for businesses,” said Mr DeAngelis.

So far, other major European ports have not seen a huge capacity shift because of the strikes in Germany – FourKites data show average dwell time at Rotterdam, Antwerp, Valencia and Piraeus remained flat during the July strikes.

The ver.di commission will announce its next steps at its meeting on 22-23 August, based on the feedback from members.