The department store group Galeria Karstadt Kaufhof has to flee under a protective shield. Every third department store will close. Around 50 of 50 branches remain in the delicatessen division. But there could be more.
The union Verdi has agreed with Karstadt Feinkost GmbH on a social wage agreement. “At least 26 branches have been preserved and there is hope for four more branches,” said ver.di federal group leader Orhan Akman. It is bitter that locations will still be closed and 637 employees will lose their jobs.
However, the collective agreement ensures the best possible protection for the employees affected by the dismissal. Likewise, job security had been agreed for those who continued to work. According to Verdi, around 2100 employees work in 50 branches at Karstadt Feinkost. There was initially no communication from the company.
A legal right to join an employment and qualification society (BQG) followed by a six-month employment relationship was agreed for the employees affected by job loss. A possible continuation of the four branches would reduce the number of employees who lose their jobs.
The department store group Galeria Karstadt Kaufhof had to seek rescue in a protective shield procedure in early April in view of the drop in sales due to the corona crisis. Most recently, he announced that 62 of 172 department stores would be closed and several thousand jobs would be cut. Karstadt Sports plans to drop 20 out of 30 branches.
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