After one and half years back and forth, the nearly 16,000 employees of the supermarket chain Kaiser’s Tengelmann now have certainty that your employer is taken over from the leader Edeka. German Economics Minister Sigmar Gabriel (SPD) gave the acquisition its permission, but under strict conditions. To him, it had gone all about securing jobs for those who “do not belong to the earners”, the vice-chancellor said Thursday in Berlin.
The Bundeskartellamt had the merger of the two companies because competition concerns prohibited last spring, the monopolies Commission had opposed the takeover, because Edeka already is by far the largest food retailer and after acquisition of the smaller competitor Kaiser’s Tengelmann would be even more powerful. After the veto of the Bundeskartellamt only was still a way for the supermarket marriage freely. Gabriel with the instrument of ministerial permission
A few hours after Gabriel had announced his ministerial approval on Thursday afternoon occurred, the boss of the monopolies Commission, Daniel Zimmer, back. The Monopolies Commission is the main advisory body to the federal government in terms of competition. “A continuation of my activity in the Monopolies Commission does not appear to me useful if a unanimously granted the Commission’s recommendation is not accepted in a unique case,” said Room. An affront.
Jobs will receive seven years
This is now done. The SPD politician approved the acquisition after long deliberation among “very strong” conditions, he emphasized. Edeka may not pass the 450 branches of Kaiser’s Tengelmann five years to independent Edeka retailers, unless the unions agree to.
also be hard Written the jobs of 15,694 employees Kaiser’s Tengelmann (as of December 31 2015). They should be obtained for at least seven years, Gabriel decreed. It is about “people who do not belong to the high earners,” stressed the Minister. Warehouse workers, meat sellers who go 1500 to 2000 euros gross per month home. But not only wants to secure jobs Gabriel. Five years to the “quality of participation and the works council structures” can not be touched. Edeka is my ministerial approval must retain the tariff conditions in force at Kaiser’s Tengelmann.
For the first time become the protection of workers’ rights and participation subject to ministerial approval, said Gabriel. Trade unions Verdi and NGG he had thus a “strong position” given. Should Edeka violated the terms of the Minister, close stores or terminate collective agreements which ministerial approval is valid – retroactively – as not granted. In force permission so Gabriel when Edeka and unions completed the necessary collective agreements and have submitted to the Ministry.
Verdi welcomed the decision. Gabriel had made it clear that a takeover in the sense of the common good interest would only be possible if concrete jobs, but also the workers’ rights were preserved. “This is an extremely important step, which we welcome,” said Verdi board member Stefanie Nutzenberger. Now it is a matter design the concrete conditions in collective bargaining.
Edeka ensures conditions
Edeka and Kaiser’s Tengelmann welcomed the ministerial approval and stated that they wanted the conditions “speedily execute”. Tengelmann CEO Karl-Erivan Haub said, now have workers after 17 months waiting period “at last a reliable future perspective”. Haub wants to separate long been in deficit from the shops. In Berlin Kaiser’s still operates 130 stores. Whether the markets after the acquisition further called Kaiser’s or be renamed or Edeka Reichelt Edeka did not want to say on Thursday. Berlin Economics Senator Cornelia Yzer (CDU) spoke out in view of the employees and the importance of retailing for Berlin for a takeover of Kaiser’s by Edeka.
However, not only Edeka had to Kaiser’s endeavor. Also, the second largest food retailer Rewe had wooed Kaiser’s Tengelmann. Haub had but negotiated from the beginning only with Edeka. On Thursday Rewe CEO Alain Caparros announced to appeal against the ministerial approval. “We have always said that we will use all legal means,” said the CEO. Rewe will therefore appeal to the Higher Regional Court of Dusseldorf against the ministerial approval.
The Board has the Berlin competition expert Hans-Peter Schwintowski opinion quite likely to succeed. “The Monopolies Commission and the Bundeskartellamt have voted for good reason not to pay,” said the Berlin professor, who teaches at the Humboldt University, the Tagesspiegel. Cited by Gabriel workplace argument is irrelevant to competition law and a double-edged sword. “In the past, such promises have never been kept,” stressed Schwintowski. “Therefore, I would recommend Rewe to appeal against the ministerial approval”. According to the Federal Ministry of Economics, the action but does not suspend.
Agricultural Minister Schmidt warns disadvantages for farmers and consumers
Not only Rewe sees the ministerial permit critical. The German Farmers’ Association is concerned that the competitive conditions will deteriorate within the food chain, so that – as is currently already visible – come to greater losses in agriculture. Even Federal Agriculture Minister Christian Schmidt (CSU) provides for the acquisition “with great skepticism”. The already very high concentration in the food retail suppose by this decision to continue, Schmidt stressed on Thursday. The minister feared disadvantages for consumers and agriculture. “In the long term the market power companies will dictate prices, both at the suppliers, as well as on the shelves,” warned the Minister. “Already now, many small and medium producers a few dominant buyers over, with the result of falling prices and incomes for agriculture.” The Greens Group in the Bundestag criticized Gabriel silent about the concerns that risk by the merger jobs at suppliers and competitors be. For the employees of Edeka there are no guarantees that not they are dismissed and own locations are closed to make the merger with Tengelmann profitable.
Gabriel does not fight at that. it could be that get the suppliers in the future less of it but benefit the consumer. and yes, he had also in mind that not only Edeka available stand, but also Rewe. Their offer but have him “not convinced”.
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