Former Labor Judge Mediates €70 Million Severance Gap as Zalando Closure Talks Resume
24.06.2026 - 03:51:45 | boerse-global.de
A former labor judge is now presiding over negotiations between Zalando and its employee representatives, tasked with bridging a staggering €70 million divide. The online fashion retailer is offering around €30 million in severance for the planned closure of its Erfurt logistics center, while the workers' side is demanding roughly €100 million. The mediation board held its first session in Erfurt on Tuesday, with 2,100 jobs hanging in the balance.
Direct talks between management and the works council collapsed on June 20. The two sides remain "extremely far apart" on core issues, both admitted before the mediation began. The board's mandate is to produce a legally binding reconciliation of interests (Interessenausgleich) and a social plan (Sozialplan) that will govern the shutdown.
Time is tight. The mediation schedule reserves only four sessions, with the final round set for July 9. The goal is to give affected workers planning certainty before operations wind down. Zalando is sticking to its previously announced closure date: the end of September 2026.
Since the company made its decision public, the works council has been pushing for a comprehensive financial safety net. The outcome of this week's talks will determine whether the 2,100 employees receive a significantly higher compensation package than the company's initial offer — or whether Zalando manages to cap its costs at a fraction of what labor representatives deem fair.
