New Delhi

Millions of German commuters and travellers faced severe disruptions on Thursday as strikes escalated in the transportation sector.

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Railway workers and airport staff across the country walked off the job, causing chaos for commuters and compounding the nation's economic challenges amid a looming recession.

Nationwide impact on rail and air travel

Train drivers, led by the German Train Drivers' Union (GDL), initiated a fifth round of strikes as part of a prolonged dispute over working hours and compensation.

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Only one in five long-distance trains was operational, according to Deutsche Bahn, resulting in significant disruptions for passengers.

Simultaneously, Lufthansa airline ground staff commenced a two-day strike, leading to the cancellation of 650 out of 1,750 flights at Frankfurt Airport.

The ADV airport association warned that these strikes were damaging Germany's reputation as a centre for business and tourism.

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Economic impact and warnings

According to a Reuters report, the strikes come at a critical time for Germany, with the economy contracting by 0.3 per cent in 2023, and the government anticipating a weaker-than-expected recovery.

A one-day nationwide rail strike could cost approximately 100 million euros in economic output, according to Michael Groemling, head of economic affairs at IW Koeln.

Deutsche Bahn accused the GDL of inflexibility, with spokesperson Achim Stauss stating, "The other side doesn't budge a millimeter from its maximum position."

Economy Minister Robert Habeck expressed his loss of sympathy for the strikers, highlighting the need for a solution without radical impact on others.

Lufthansa, facing both ground staff and potential cabin crew strikes, warned of a higher-than-expected operating loss in the first quarter of 2024 due to the ongoing disruptions.

Discontent over pay and working conditions

The strikes stem from separate disputes over pay and working conditions.

GDL demands a reduction in the working week from 38 to 35 hours without a pay cut, a proposal Deutsche Bahn has rejected.

As per the BBC, GDL head Claus Weselsky criticised the management, highlighting a 14 per cent increase in management salaries with millions in bonuses while workers contribute to the company's recovery.

At Lufthansa, the Ver.di union demands a 12.5 per cent pay rise or a minimum of €500 more per month, citing ground staff struggling with minimum wage despite the company's soaring profits. Lufthansa's offer of a 10 per cent pay increase was deemed insufficient by the union.

Future outlook

As the strikes continue, with potential ramifications for the German economy and international business and tourism, negotiations remain stalled, and both sides brace for further disruptions.

(With inputs from Reuters)