Zalando Erfurt Social Plan Talks Fail, Dispute Moves to Conciliation Board

Negotiations for a social plan at Zalando's Erfurt logistics center have collapsed, pushing the process to a conciliation board. The works council broke off talks, stating that the company's financial offer was insufficient to compensate for the social disadvantages of the site's closure.

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The ideas were too far apart.

The employee representatives argued that Zalando's proposed social plan was inadequate, given the company's substantial spending on "luxury marketing and sports sponsoring." The works council criticized the company's priorities, stating in a message that "for the Erfurt workforce, who made the company big and rich over a decade on minimum wage, only financial ruin and the threat of poverty in old age remain."

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The sum offered by the employer is not enough to compensate for the social disadvantages for a site of this size.

Political parties have also voiced strong criticism. The Left Party's parliamentary group in Thuringia called Zalando's proposals "unacceptable and an outrage." Party leader Christian Schaft pointed to Zalando's significant investments, including a billion euros for acquiring About You, 300 million euros for share buybacks, and expensive sponsorship deals, contrasting this with the company's claims of insufficient funds for employees.

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For the Erfurt workforce, who made the company big and rich over a decade on minimum wage, only financial ruin and the threat of poverty in old age remain.

A social plan typically outlines financial compensation such as severance pay or bonuses for affected employees. While talks on the social plan failed, the company reported progress on an "interest reconciliation" agreement, which addresses organizational aspects of the closure, like shift planning. The logistics center, crucial to Zalando's growth as an online fashion retailer, is slated for closure in the fall, with a target date of September 30, 2026, affecting around 2,000 jobs. The conciliation board is expected to convene its first session next Tuesday, with a potential final meeting on July 9.

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Anyone who had a billion euros to buy the platform About You, raised 300 million euros for the repurchase of their own shares, or concludes expensive sponsorship deals, then says there is no money for the employees, is simply absolutely disrespectful.