The German railway and transport union Eisenbahn- und Verkehrsgewerkschaft (EVG) is reportedly preparing to vote against the sale of logistics giant DB Schenker to Danish transport and logistics company DSV. The sale, which is valued at €14.3 billion, is due for a vote by the supervisory board of Schenker’s parent company, Deutsche Bahn, later this week. The proposed deal is part of Deutsche Bahn’s broader strategy to reduce its debt
burden, which totalled approximately €33 billion in the first half of 2024.
However, the sale has sparked concerns among unions, particularly EVG, which fears the acquisition could result in significant job losses. According to a German national daily, the union will oppose the deal at Wednesday’s supervisory board meeting. While EVG alone does not have the power to block the sale, it could seek to rally other members of the board to prevent the deal from moving forward.
The outcome of the vote hinges on the composition of Deutsche Bahn’s 20-member supervisory board, where around half of the members represent the employee side of the company. EVG will need to gain the support of other unions and employee representatives to tip the balance in their favour. However, sources say that the stance of these other unions remains unclear.
On the employer side, the board is represented by two state secretaries and three members of the German parliament (Bundestag). If the vote results in a tie, Werner Gatzer, the chairman of the supervisory board, holds the decisive vote and could push the deal through despite opposition from employee representatives.
EVG is not alone in its concerns. Leading trade union Ver.di has also voiced apprehensions about the potential consequences of the sale, particularly regarding job security. Ver.di has argued in favour of an alternative bid from a private equity consortium led by CVC, which the union believes would better safeguard jobs in Germany. The union’s preference highlights the underlying fears that DSV’s acquisition could lead to restructuring and
layoffs, threatening employment stability for DB Schenker’s workforce.
DB Schenker, a profitable division within Deutsche Bahn, has been a rare bright spot for the struggling rail operator. In the first half of 2024, despite challenges, the forwarder reported airfreight volume growth of 1%, reaching 576,100 tonnes. However, the company also experienced a 6.6% decline in year-on-year revenues, which fell to €9.4 billion. Adjusted earnings before interest and tax (EBIT) also fell by 16.9%, down to €520 million.
In contrast, Deutsche Bahn as a whole reported an EBIT loss of €677 million for the same period, which it attributed to strikes, severe weather conditions, and the need for infrastructure investments. This stark contrast in performance underscores why Deutsche Bahn sees the sale of DB Schenker as crucial for its efforts to reduce debt and shore up its financial position.
For DSV, the acquisition of DB Schenker represents a significant opportunity to expand its presence in the global logistics and freight forwarding industry. With its established footprint in Europe and beyond, DB Schenker would complement DSV’s existing operations and bolster its competitive edge in a rapidly consolidating sector.
However, DSV’s potential gains may come at a cost to DB Schenker’s workforce, particularly in Germany, where restructuring could lead to job cuts —an issue that has become a focal point of opposition from unions. While DSV has not provided specific details on its post-acquisition plans, unions fear that the company’s cost-saving measures could involve significant layoffs.
As the supervisory board prepares to vote on the deal, the outcome remains uncertain. EVG and Ver.di’s opposition signals significant resistance from the labour side, but whether they can sway other board members remains to be seen. Should the vote end in a deadlock , Werner Gatzer’s deciding vote could push the deal through, overriding union concerns.
