A former labor judge will now broker a binding compromise between Zalando and its workforce in Erfurt after direct talks collapsed over a gaping difference in proposed severance payments. The mediation panel is set to convene on Tuesday, with a final decision expected by July 9.
The breakdown came Saturday when the works council walked away from negotiations. Council chair Tony Krause cited a massive financial mismatch: management’s latest offer stood at €30 million for a social plan, while employee representatives demanded €100 million.
Zalando is pressing ahead with its September 30 closure of the logistics site in the Thuringian capital, affecting roughly 2,000 jobs. The mediation panel, led by a neutral former labor judge, must now produce a legally binding settlement that defines terms for staff departures—covering severance pay, transition help, or other compensation.
Works councilor Jana Clausen dismissed management’s proposal as inadequate. She pointed to what she called a contradiction: the company spends heavily on luxury marketing and sports sponsorships, she argued, yet hesitates to provide fair terms for long-term employees. Criticism also came from the state parliament’s Left Party faction, which condemned Zalando’s approach.
The tight schedule leaves little room for deadlock. The panel’s last session is fixed for July 9, by which time a binding outcome must be reached.
While Zalando’s stock traded largely unaffected by the local conflict, closing at €24.13 on Friday, the decision of the mediation panel represents the final avenue for Erfurt workers to soften the economic blow of the site closure.
