Railway Union EVG Opposes German Rail’s Restructuring Plan
The German Railway Union EVG has voiced strong opposition to the restructuring plan proposed by Deutsche Bahn’s CEO, Richard Lutz. In a letter to the company’s supervisory board, EVG’s chairman, Kristian Loroch, accused Lutz of attempting to “distract from his own serious management mistakes” with his plan, S3, which Loroch described as “non-sustainable and willing to please the government.”
The union’s concerns center on planned changes to internal service providers within the Deutsche Bahn, which are set to be decided upon by the company’s board in July. The restructuring, according to EVG, is a response to a financial imbalance in the company’s rolling stock maintenance division, which operates the group’s works. The union fears that Lutz is creating facts on the ground before the German government has a chance to decide on the future of the company.
In his letter, Loroch also presented his own proposals for the company’s reorganization. He suggested merging many of the company’s service providers with the infrastructure-focused DB Infra-GO, a move that would see the security service, DB Security and the company’s lounges join the infrastructure arm. Loroch also proposed transforming the sales division, which is currently tied to the long-distance rail network, into a cross-industry sales platform as part of the Infra-GO unit.