Lawsuit Over Works Council Vote Adds to Tensions at German Retailer Breuninger Amid Nationwide Pay Strikes
20.06.2026 - 02:20:29 | boerse-global.de
A bitter internal conflict is shaking the Stuttgart-based department-store group Breuninger, with employees publicly protesting against heavy workloads and what they call unfair pay structures. The unrest has been compounded by a legal challenge to the most recent works council election.
The precise grounds for challenging the ballot remain undisclosed, but the move underscores mounting distrust between staff and the existing representative bodies. Criticism focuses especially on excessive work pressure and current compensation levels. In an effort to calm the situation, CEO Holger Blecker, 56, addressed employees directly through an internal newsletter. Whether that communication can defuse the tension is uncertain — the ongoing court case keeps the atmosphere charged.
The clash over wages mirrors a wider battle across German retail. The union Verdi organised nationwide warning strikes in the sector throughout June 2026. On 19 June alone, staff at 31 Ikea branches walked out. Verdi is demanding a 7 percent pay increase, with a minimum monthly raise of €222 to €225, for a one-year contract. Employers have countered with an offer of roughly 2 percent more from November or December 2026, plus an additional 1.5 percent the following year, spread over two years. The wide gap reflects the same frustration driving the dispute at Breuninger, where remuneration is a core issue.
Despite the internal fractures, Breuninger is pushing ahead with its digital expansion. In early April, the company launched its marketplace concept in the Netherlands. In Germany, the model already operates with around 300 partners. The pressure on staff remains high, as many retailers are planning restructuring or job cuts — including competitors like Ikea, where discussions about layoffs and department closures are under way. At Breuninger, the conflict for now centres on working conditions and worker representation.
The next round of collective bargaining is scheduled for late June. The outcome could send a signal to the traditional Stuttgart company as it tries to navigate both internal discord and broader sectoral pressures.
