Zalando in Erfurt: Works Council Breaks Off Negotiations on Social Plan

Since no agreement was reached by 20 June, the conciliation board under the chairmanship of a former labor judge will meet for the first time next Tuesday. Both sides had agreed to this in advance. This was preceded by a settlement that provided for negotiations to initially take place outside a conciliation board. Management announced on Saturday midday that the procedure – as agreed in advance – would now move to the conciliation board under the neutral chairmanship of a former labor judge.

What a Social Plan Is Meant to Regulate

The social plan is intended to regulate financial compensation for employees, for example through severance payments or bonuses. „Der Sozialplan regelt den finanziellen Ausgleich für die Beschäftigten wie Abfindungen oder Prämien." Zalando has always justified its draft social plan with a limited budget for the Erfurt site. According to the works council, however, the positions were too far apart. „Die Vorstellungen hätten zu weit auseinandergelegen. Die vom Arbeitgeber in Aussicht gestellt Summe reiche nicht aus, um die sozialen Nachteile bei dieser Standortgröße auszugleichen." The works council therefore described the offer from Zalando's management as inadequate.

As works council member Jana Clausen told MDR THÜRINGEN, the employers had also not approached the employee representatives. „Die Arbeitgeber seien nicht auf die Arbeitnehmervertreter zugegangen." There would be no cushioning of what the employees needed. The employee representation was initially not available for comment, it was said.

2,000 Jobs at the Site Affected

According to the information, around 2,000 jobs at the Erfurt site are threatened with closure. „Bei Zalando in Erfurt geht es aktuell um rund 2.000 Arbeitsplätze." The DAX-listed company wants to close the logistics center, which made it big as an online fashion retailer, in the autumn. A Zalando spokesperson reaffirmed: „Unser Ziel bleibt es, das Verfahren zeitnah abzuschließen und das geplante Schließungsdatum zum 30.09.2026 umzusetzen".

While good results have already been achieved on the reconciliation of interests, which regulates the organizational aspects of the planned closure such as shift planning, according to a company spokesperson, the social plan remains contested. „Beim Interessenausgleich, der die organisatorischen Aspekte der geplanten Schließung wie Schichtplanungen regelt, wurden laut einem Unternehmenssprecher bereits gute Ergebnisse erzielt." The reconciliation of interests is primarily concerned with questions of shift and personnel planning during the remaining period of operation.

Criticism from the Works Council and from Politics

The works council described the situation dramatically from the workforce's perspective: „Für die Erfurter Belegschaft, die den Konzern über ein Jahrzehnt lang auf Mindestlohn-Basis überhaupt erst groß und reich gemacht hat, bleibt am Ende nur der finanzielle Absturz und drohende Altersarmut". The employee representation accused the company of spending money lavishly on luxury marketing and sports sponsorship while offering too little to employees.

Sharp criticism of the proposals also came from Thuringian state politics. Christian Schaft, parliamentary group leader of the Left in the Thuringian state parliament, called the offer unacceptable and spoke of an impertinence: „Die vom Konzern vorgelegten Vorschläge seien nicht annehmbar und eine Unverschämtheit". Schaft also pointed to the group's spending beyond the site: „Wer wie Zalando eine Milliarde hatte, um die Plattform About You zu kaufen, 300 Millionen Euro für den Rückkauf von eigenen Aktien aufgebracht hat oder teure Sponsoringdeals abschließt, dann aber sagt, es sei kein Geld für die Beschäftigten da, ist einfach absolut respektlos."

Further Proceedings in the Conciliation Board

According to the available information, Zalando spent around one billion euros on the acquisition of the About You platform and invested 300 million euros in the buyback of its own shares. These sums moved to the forefront of the political debate over the Erfurt closure. The group, by contrast, points to a limited budget for the Erfurt site that stands in the way of an expansion of the social plan.

The further procedure is now formally regulated: Both sides had agreed in advance that if direct negotiations failed, a conciliation board under neutral chairmanship would be convened. The procedure will now – as agreed in advance – move to the conciliation board under neutral chairmanship. The conciliation board is an in-company conflict resolution body, staffed on a parity basis, which can issue a ruling in the event of failure to agree, to which the parties must adhere.

The first meeting of the conciliation board is scheduled for next Tuesday. An initial meeting will take place next Tuesday. If no rapprochement is achieved by then, the body under the chairmanship of the former labor judge could develop a proposal to serve as the basis for a final settlement. The last currently planned meeting is scheduled for 9 July, according to the information. „Als Termin für die vorerst letzte Sitzung ist den Angaben nach der 9. Juli geplant."

Outlook on the Upcoming Meetings

Regardless of the outcome of the conciliation board, Zalando is sticking to the closure date of 30 September 2026. The company emphasizes that it wants to conclude the procedure promptly in order to make the transition manageable for employees and the company. The Erfurt site is considered one of the group's first major logistics locations and was for years a central building block in Zalando's growth into Europe's largest online fashion retailer.

For the employees, the situation remains uncertain until an agreement is reached. The level of severance pay, transfer companies, possible qualification measures, and transitional arrangements are the central points of dispute. The ver.di union, which has been accompanying the site for a long time, had also called for a significantly better social plan in recent weeks. The further course of proceedings in the conciliation board is therefore considered decisive as to whether the around 2,000 employees at the site will receive an economically viable perspective or will be left facing the loss of their jobs without adequate protection.

Observers assess the failure of negotiations on Saturday as a significant intensification of the conflict. While management points to the agreed procedure and emphasizes the next steps in the conciliation board, the works council speaks of an insufficient basis for negotiation. The upcoming meetings – beginning on Tuesday and initially ending on 9 July – will show whether an approximation between the parties is still possible or whether the conciliation board will ultimately have to issue a ruling.