Germany: unions and temporary agencies want to stop wage dumping at the Schlecker hardware stores

“XL stores for XS wages.” In Bremen, Heidelberg, or many other cities in Germany, unhappy employees and sympathizing customers have been demonstrating against the new strategy of the Schlecker hardware store chain, European leader in the sector with 14,000 retail stores and 52,000 employees. The slogans of the demonstrators, who protest against the opening of the new Schlecker XL Markt, summarize the operation’s philosophy: “XL stores for XS wages.” Indeed, since the beginning of the year, the company has been closing more and more small stores (Drogeriemarkt) and replacing them with bigger ones (Schlecker XL Markt). These are managed by Schlecker XL GmbH, a company created in November 2008, officially independent from Scheckler. Employees from the closed stores find themselves unemployed or are offered a job by Meniar, a temporary work agency also independent, but which only works for Schlecker XL GmbH. The wages proposed by Meniar are in line with the tariffs negotiated by a small Christian union (about €6/hour), about 50% below the tariffs negotiated in majority collective agreements in retail with the Verdi union (around €12/hour). Created about one year ago, these two new companies are run by former Scheckler executives.  Since the beginning of the year, Verdi has listed approximately 130 new “XL” stores; for every supermarket opened, three small stores are closed.