Union Backs New DB Cargo Leader

Union Backs New DB Cargo Leader

The Eisenbahn- und Verkehrsgewerkschaft (EVG), a major rail and transport union, is expressing cautious support for the new leadership of DB Cargo, Germany’s largest freight rail operator. Bernhard Osburg assumed the helm just a month ago, replacing Sigrid Nikutta after a protracted dispute that saw the EVG aggressively pushing for her dismissal. The change in leadership represents a significant shift in strategy for the struggling division of Deutsche Bahn.

Cosima Ingenschay, EVG’s vice president and deputy chairman of the Cargo supervisory board, told the “Süddeutsche Zeitung” that the situation at DB Cargo remains “extremely difficult”. However, she emphasized a crucial difference under Osburg: a renewed focus on business development rather than simply managing decline. “Previously, it felt solely about damage control” Ingenschay stated.

While acknowledging the immediate pressure to achieve a “break-even” point by 2026, Osburg has reportedly indicated a broader ambition: to maintain DB Cargo’s position as a European market leader. This vision, though welcomed, is not without potential conflict. “On the right path to get there, we will negotiate hard and certainly argue” Ingenschay warned, highlighting potential friction points.

Crucially, the EVG is prioritizing strategies to mitigate potential job cuts. The union aims to develop measures that rely on process improvements, enhanced competitiveness and the acquisition of new clients, as opposed to workforce reductions.

The turnaround plan appears to be gaining external validation as well. Just days ago, management consultancy Oliver Wyman, previously critical of Nikutta’s proposed restructuring and deeming it “objectively unsuitable” for addressing the root causes of the crisis, confirmed that the new plans were moving in a positive direction.

Osburg himself echoed this sentiment, stating that the initial steps in the restructuring process have been successful and that an independent expert has deemed the concept plausible. A detailed and sustainable plan for the future of DB Cargo is expected to be finalized by the new year, with the final restructuring plan due by the end of February. “My goal isn’t just to have a positive result in 2026. Anyone can do that” Osburg asserted. He’s framed his vision as a long-term investment, already looking towards 2030 and aiming to reposition DB Cargo for future success. The coming months will be crucial to determine whether this ambitious agenda can be realized and whether the new leadership can navigate the complex political and economic pressures facing the vital, but struggling, freight rail division.