Germany: 10,000 employees fired by Schlecker causes political and ideological turmoil beyond the trade industry

10,000 compulsory redundancies.  Receiver Arndt Geiwitz, who took in his hands the fate of Schlecker, which announced that it was closing 2,200 stores after the judicial settlement, postponed, in vain, the final deadline for the company’s 10,000 employees (11,200 actually, but 1,200 already quit).  Indeed, since the beginning of the week, the German Länder have been fighting about the modalities for the creation and funding of a “transfer company” in order to lessen the social consequences of these mass layoffs.  The idea, presented by the receiver and supported by unions and the central WC, was to create a redeployment company for six months.  It would have hired the employees supposed to leave for a subsidized salary amounting to 80-87 percent of their last paycheck.  €70 million would have been needed to pay for this operation.  At first, Schlecker wanted to take out a loan and then pay it back by selling foreign subsidiaries, more profitable than the German chain.  To get this loan, the Länder or the Federal State needed to give a deposit.  The liberal Ministers of Economic Affairs of Bavaria, Low-Saxony and Saxony rejected the plan, judging a) that a transfer company didn’t improve employees’ redeployment options; b) that it was a waste of public money; and c) that it conflicted with the principles of free competition.  In the afternoon of Thursday, March 29, Arnst Geiwitz announced that the dismissal letters were sent.