Germany: Faced with an uncertain return to work, the employees of the Deutsche Bahn AG (railways) and of Volkswagen, clutch at ways to secure their jobs

Deutsche Bahn – What future for the workers following privatisation? – Though clearly better off than their automobile colleagues, the 230,000 ‘rail workers’ are, nevertheless, worried about their future.  In fact, after several years of reform and restructuring of the German railways, involving the transformation of the Federal Company of Railways (Deutsche Bundesbahn) into a stock company (Deutsche Bahn AG), and with more than 90 billion euros invested in the modernisation of the railway network, the federal government now wants to privatise the company by listing its capital, either totally or in part, on the stock market. Indeed, the level of the privatisation will depend on what there will be to privatise.  For years, politicians have argued about whether to cut the company in two in order to privatise rolling stock and services whilst leaving the network in the hands of the state, or whether to privatise it wholesale.  The latter solution is the preferred option of the management of the company and of the Federal Minister of Finance, amongst others. The state would still have to be the main shareholder, a confidence factor, but would probably yield more money.  9 billion euros have been mentioned.  Yesterday evening (24/8/06), a meeting at the summit presided over by Mme Merkel tilted the balance in favour of a wholesale privatisation of Deutsche Bahn. But for the employees of the company, represented by Transnet (employees) and the GBDA (public sector workers), this decision does not make clear what is actually going to happen.  “The decision taken by the government yesterday does not change the facts of the matter.  On the one hand because the final decision must be taken by the Parliament and not by the government.  And on the other because we have no guarantee that there won’t be massive job cuts even with wholesale privatisation”, declared Michael Klein, spokesperson for Transnet to e-europneews.  At this time, the collective labour agreements in force guarantee job security to all the personnel until 2010.  But wholesale privatisation would unleash a reorganisation of the legal and operative structure of the company with a probable externalisation or even the sell-off of some activities. In that case, the employees of the sectors involved would no longer be part of Deutsche Bahn AG and so would not have job security.
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ts capital, either totally or in part, on the stock market. Indeed, the level of the privatisation will depend on what there will be to privatise. For years, politicians have argued about whether to cut the company in two in order to privatise rolling stock and services whilst leaving the network in the hands of the state, or whether to privatise it wholesale. The latter solution is the preferred option of the management of the company and of the Federal Minister of Finance, amongst others. T

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