European Labor Conflicts: Severance Payouts, Plant Closures, and a First Union Contract for Firefighters

Tens of thousands of retail workers across Germany are preparing for walkouts Thursday and Friday after the ver.di union called for nationwide warning strikes. Large rallies are expected in Berlin, Bochum, Erfurt, Kiel and Saarbrücken as the union pushes for a seven percent wage increase. Employers have countered with offers of just two percent from November, followed by another 1.5 percent in August 2027 in regions like Hamburg and North Rhine-Westphalia. The action echoes earlier strikes at H&M, IKEA and Kaufland in the Mannheim/Heidelberg area in late May.

While retail workers mobilize, a different kind of settlement emerged in the luxury sector. On Thursday, French conglomerate Kering and Italian unions finalized a social plan for its fashion house Alexander McQueen, addressing planned job cuts at Italian sites. Kering shares rose 2.87 percent to €251.05 in afternoon trading following the news.

The agreement came hours after Kering confirmed a leadership change: Gianfranco D'Attis, a 25-year industry veteran who previously ran Prada, will take over as CEO of Alexander McQueen, operating from London and reporting to Kering vice-CEO Luca de Meo. His task is to reposition the heritage brand at a time when the global luxury market is reeling. Industry leader LVMH reported a five percent revenue drop for fiscal 2025, with profits falling nine percent to roughly €19 billion. In the first quarter of 2026, sales slid another six percent. Analysts estimate the luxury sector has lost between 55 and 65 million active customers since 2022.

In southern Germany, the automotive supplier Mahle ended an eight-day strike at its Neustadt an der Donau plant after IG Metall members approved a social wage agreement on Tuesday. The plant is slated to close in the first quarter of 2027. The deal offers severance packages of up to €250,000 and includes a membership bonus pool totaling €3.25 million. Mahle management condemned the strike as disproportionate and potentially damaging to Germany as an industrial location.

Meanwhile, mechanical engineering firm Siempelkamp announced it will cut 129 of 282 jobs at its Size Reduction Solutions site in Zweibrücken, citing a prolonged global market downturn. IG Metall has vowed to resist and pledged to present an alternative plan for the facility.

A rare bright spot came from emergency services. On Wednesday, at the Interschutz trade fair in Hanover, the German Fire Brigade Union (DFeuG) signed its first in-house collective agreement with the ASB Hamburg. The contract stipulates a 39.5-hour workweek, 30 days of annual leave, and significant premiums for night, Sunday and public holiday work.

Across the border, Austria’s Economic Chamber (WKO) plans to eliminate roughly 200 of its 800 federal positions by the end of 2027, aiming to save €35 million through digitalization and artificial intelligence. Separately, negotiations for 50,000 workers in the chemical industry remain deadlocked after a seventh round ended Tuesday without a deal.

In Spain, a milestone was reached on Tuesday with the first industry-wide collective agreement for major textile retailers, including Inditex, Mango, Primark and H&M. The pact covers over 120,000 employees and provides for three percent pay rises in both 2027 and 2028, along with a maximum weekly working time of 38.5 hours.

en | boerse | 69485001 |