Experts have warned the rail strike, set to last for almost a week, will have a severe impact on Germany's economy.Train drivers in Germany on Wednesday began their longest strike yet in an ongoing labor dispute with Deutsche Bahn that is going to impact thousands of passengers and could dent the economy with a loss of up to €1 billion ($1.1 billion).

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On Monday, the German Train Drivers' Union (GDL) had called for a six-day strike. The planned industrial action will run from 2:00 a.m. local time (0100 GMT) Wednesday until 6 p.m. on Monday for passenger traffic. The strike for freight trains began a day earlier.

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This is the fourth rail strike since November. It marks an escalation of the dispute between GDL and Deutsche Bahn over salaries and work hours.

It comes just days after the last walkout staged by rail employees on January 10 and 12.

The last face-to-face negotiations between the GDL and DB took place at the end of November 2023.

The GDL wants to cut weekly working hours for shift workers from 38 to 35 hours without a salary reduction. Deutsche Bahn set out a plan for a one-hour reduction without a salary drop or a 2.7% raise if a train driver maintains the 38-hour week in addition to pay rises of up to 13% and a one-off inflation bonus. The union rejected that offer ahead of the strike.

'Strike against German economy'

Tanja Gönner, managing director of the Federation of German Industries (BDI), said, "With a six-day strike, it is not unrealistic to expect losses totaling up to €1 billion."

The prolonged industrial action "is a strike against the German economy," Deutsche Bahn spokeswoman Anja Broeker said. She pointed out that "cargo traffic handled by the service include supplies for power plants, refineries."

She, however, also said, "DB Cargo will do everything to secure the supply chain, but it's clear that there will be some impact."

Each strike is expected to cost "a low two-digit million figure," according to Deutsche Bahn's calculations, but experts estimate a more severe loss to the economy.

Describing the strike as "destructive," Transport Minister Volker Wissing said it would mount further pressure on supply chains that are already overstrained due to attacks on Red Sea shipping routes by Houthis in Yemen.

"I find that it is unreasonable vis-a-vis train travelers that the trains are standing there blocked while one's not at the same time sitting at the negotiating table," Wissing said.

mfi/sms(AFP, dpa)

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(The above story first appeared on LatestLY on Jan 24, 2024 12:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).