Status: 03/14/2023 10:35 a.m
Government and opposition representatives reacted with regret to the announced closure of 52 Galeria department stores. Minister of Labor Heil is counting on many employees finding new jobs.
Federal Minister of Labor Hubertus Heil (SPD) is counting on as many employees as possible finding new jobs after the expected closure of more than 50 department stores of the Galeria Karstadt Kaufhof group.
There is the possibility of setting up a transfer company to support people with a professional reorientation, said Heil in the ARD-Broadcast “Hard but fair”. “I would have wished that redundancies could be avoided. If that’s not the case, this is the right tool.”
Heil: Bitter news for many inner cities
Heil said of the closure plans: “This is damn bitter news, also for many inner cities.” Sometimes employees have to pay for wrong entrepreneurial decisions from the past.
“But I also say to the employees from this point: We will use the possibilities that we have if such an agreement for a transfer company comes about, with the Federal Employment Agency, to help that – wherever possible – people find connections ‘ added Heil.
Habeck regrets closures
Federal Minister of Economics Robert Habeck (Greens) also regretted the closure of the department stores. The decision was difficult for the employees concerned, he said on the sidelines of a visit to Brasilia.
Regrettably, this decision was made during the insolvency process. It will now be the task of the social partners to find a solution that will make it as easy as possible for the people concerned to find a new job.
Extensive closures of 52 branches at Galeria Karstadt Kaufhof
Susanna Zdrzalek, WDR, daily topics 10:15 p.m., March 13, 2023
Bartsch criticizes owner Benko
Left parliamentary group leader Dietmar Bartsch sharply criticized the real estate entrepreneur René Benko, whose Signa group owns the department store chain. Benko “failed,” Bartsch told the newspapers of the editorial network Germany (RND).
“There are doubts as to whether Benko was ever concerned with Galeria and not always with his real estate business first.” Bartsch told the broadcasters RTL and ntv that Benko had to be held responsible. The owner of the chain is a “billionaire” and has to make his contribution.
Bartsch spoke to the RND newspapers of a “tragedy for employees and city centers when 52 branches are on the verge of closure”. He called on Economics Minister Habeck to intervene and become the “advocate for employees”. “We need a debate about a public rescue company from the federal and state governments, about department stores in public or cooperative hands,” said Bartsch.
Over 5000 employees lose their jobs
According to the general works council, Galeria Karstadt Kaufhof wants to close 52 of the remaining 129 department stores. Accordingly, “well over 5,000 employees will lose their jobs” in the course of the insolvency proceedings.
It would not only be jobs in the branches that were closed that would be lost. Area reductions and staff cuts in the remaining houses and in the central functions are also planned. The company itself spoke of more than 4,000 people affected. You should receive the offer to switch to a transfer company in order to further qualify for a new job.