Rail Union Demands Secure Funding

Rail Union Demands Secure Funding

Ahead of Transport Minister Patrick Schnieder’s presentation of the national rail strategy on Monday, the IG Metall trade union has emphasized the need for long-term financial stability for the rail sector. Jürgen Kerner, Deputy Chairman of IG Metall, stated that the strategy must provide a reliable and sufficient funding framework extending beyond individual budget years to create planning certainty for the rail industry. He argued that this is a prerequisite for rail industry companies to invest in domestic locations, expand capacity and create jobs.

Minister Schnieder is scheduled to unveil plans for the reform of the national rail network, with speculation suggesting the appointment of a new CEO could also be announced.

Kerner further emphasized that the ongoing transition to more sustainable transport should fuel a “jobs offensive” both in Germany and Europe. He called for a revision of current procurement practices, arguing that contracts for public bodies and Deutsche Bahn should not solely focus on the lowest bid price – a common practice currently. Instead, social and ecological criteria need to be given greater consideration, alongside a strengthened emphasis on regional economic output during the allocation of contracts.

Meanwhile, Anton Hofreiter, a Green Party representative on European Affairs, is advocating for a joint initiative aimed at modernizing the European rail network. He cited the Deutsche Bahn’s persistent delays as reflecting negatively on Germany’s image on the European stage. Mr. Hofreiter believes a European infrastructure fund, dedicated to investing in modern and interconnected rail links, is urgently needed to effectively connect major cities and strengthen European cohesion.

Hofreiter welcomed the forthcoming announcement of the rail reform and the new CEO, expressing his expectation for “concrete and bold proposals that rethink the entire system”. He stressed the importance of digitalizing both the rail network and rolling stock, increasing the network’s capacity for both passenger and freight transport and ensuring the rail board is comprised of individuals with a deep understanding of the rail system’s complexities.