The announced closure of Zalando’s Erfurt site in Thuringia has ignited a fierce political backlash, with former state premier Bodo Ramelow (The Left party) accusing the online retailer of “predatory capitalism”. The planned shuttering, impacting 2,700 jobs, has drawn criticism over the apparent disconnect between substantial public investment and the company’s current actions.
Ramelow highlighted the pivotal role Erfurt played in Zalando’s growth trajectory. Having initially sought to relocate from the Berlin region, the company established a significant presence in Erfurt, a decision he argues was facilitated by considerable state funding and the active support of the Thuringian government. He insisted the Erfurt facility was not merely a regional outpost, but “the starting point and guarantor of [Zalando’s] success in conquering Germany and later Europe.
During his tenure as Minister President, Ramelow was involved in fostering the establishment of a works council, now actively supporting strike action alongside the Verdi trade union. Negotiations for a company-wide collective bargaining agreement had recently begun to yield positive results in Erfurt, culminating in initial strikes, only to be abruptly halted by the announced closure. This timing, Ramelow argues, represents a profound shock to employees.
“To generate 100 million euros in profit, having swallowed its competition, the company is now closing major sites” Ramelow stated, denouncing the move as a “brutal demonstration of predatory capitalism”. He is now calling on both state and federal governments to exert pressure on Zalando to reconsider its decision.
The Left’s leader, Ines Schwerdtner, has broadened the critique, demanding that Zalando repay over 22 million euros in subsidies received for establishing the Erfurt facility. She argues these funds should be channeled into a compensation fund for employees who “toiled for little money for many years”. She framed this demand not just as a financial matter, but as “a question of respect.
Schwerdtner further proposed stricter conditions for future state aid. “Anyone who closes subsidized facilities must repay the tax money received. It’s ultimately our money that ends up in the pockets of shareholders” she asserted. The perceived hypocrisy of Zalando reporting profits last year while simultaneously laying off employees was labelled “perverse” with Schwerdtner suggesting the company is likely seeking to relocate its logistics operations to cheaper locations in pursuit of higher profits – a clear indication, she believes, of predatory capitalist practices. The calls for accountability and reforms are placing significant political pressure on Zalando and raising broader questions regarding the responsibilities of corporations benefiting from public investment.