On January 1st the time has come: the two municipal housing companies Gewofag and GWG will be combined to form “Münchner Wohnen” – and thus one of the largest urban housing companies in Germany. What does this change?
How many tenants are affected?
Münchner Wohnen will manage almost 70,000 apartments. Gewofag and GWG themselves do not know exactly how many people currently live there. But they assume there are around 150,000 residents.
What will change for tenants as a result of the merger?
The merger of the two companies will have “very little impact” on the tenants, says a Gewofag spokesman, who will also hold this position at Münchner Wohnen. Nothing will change in the respective rental agreements, the rent will be deducted as normal, only then from Münchner Wohnen. The contact persons in the new company will initially remain the same – although their contact details will change as the telephone numbers and email addresses of the employees will be aligned as part of the merger.
Will the rent increase?
The residents of the Gewofag and GWG apartments currently pay an average of seven euros in rent per square meter. Nothing will change in this regard for the time being. At the beginning of December, the green-red majority in the city council extended the rent freeze that had been in place since 2019 until at least the end of 2026. A new decision should then be made about a further extension. In the meantime, the social structure of the tenants should be evaluated to find out who could also pay a higher rent. How this will actually work is currently unclear.
What benefits does the city expect from the merger?
The city is counting on the future large company to become stronger in building new apartments. Gewofag and GWG recently completed around 1,250 apartments each year, and now there are plans to do significantly more. “We will manage to build 2,000 new apartments per year – and soon,” said Verena Dietl (SPD), mayor and also head of the supervisory board of Gewofag and GWG, to the SZ in an interview. She hopes for 2024 or else 2025.
The merger is also expected to save a lot of money. “Synergy effects” would save a good 45 million euros by 2026, Dietl told the city council at the end of November. On the one hand, the city expects better conditions for financing construction projects and, on the other hand, savings in the IT sector. However, by far the greatest savings potential is expected in the human resources area: According to Dietl, a more efficient distribution of tasks among employees will bring in almost 30 million euros as a “one-time effect”.
How will the merger affect employees?
The residential construction companies and politicians promise that none of the more than 1,100 employees of Gewofag and GWG will lose their job despite the merger with Münchner Wohnen. The savings in personnel are primarily due to the fact that the job creation previously planned for the individual companies in the future is reduced, it is said. A spokesman said there would be no financial losses for the employees. A corresponding works agreement between management and works councils has been “finally negotiated”. This clarifies that previous company agreements, for example on home office regulations, also apply in Münchner Wohnen.
However, employees have to adapt to internal changes. Münchner Wohnen will “bundle specialists” and “restructure teams and departments in the medium term,” Weber continued. If employees were deployed differently than before, they would “of course receive support”.
What is the mood among the employees?
Mayor Dietl considers the upcoming merger to be a success, also because the employees have been “taken along” in the process for years. However, very different assessments could be heard from the town hall opposition at the end of November. CSU parliamentary group leader Manuel Pretzl spoke of “panic, frustration and refusal to work” in companies. Andreas Lehner, who as Gewofag boss was originally supposed to take over the management of Münchner Wohnen from January but left in October after just a month, also expressed himself in a much more negative way. The short-term boss said that, as with any merger, there will be winners and losers in the workforce.
From the employees’ perspective, have all problems been satisfactorily resolved with the negotiation of the works agreement? The works councils of the two companies clearly opposed a merger a year ago. The SZ was no longer able to reach her for a statement shortly before Christmas.
Interim management duo: Doris Zoller and Christian Müller are at the helm of Münchner Wohnen until a new CEO is found in 2024.
(Photo: Gewofag)
When will Münchner Wohnen get a new boss?
After the unexpected departure of the designated Munich Wohnen managing director Lehner, the new housing company is being led by an interim management team. Doris Zoller and the former SPD city councilor Christian Müller took over the management of Gewofag after Lehner’s departure and will initially also take on this position at Münchner Wohnen. A new announcement for the role of CEO of Münchner Wohnen will not be made until next year.
When will Munich living become visible in the cityscape?
According to a spokesman, the company signs at the administrative locations and property management offices will be replaced in the new year. Little by little, Münchner Wohnen signs would also be installed at the approximately 7,000 entrances to the residential buildings.