Lower Rhine Breweries Strike Resumes Again
A Warning Strike in the Brewing Industry: What It Means for Trade
The brewing industry in Rhineland-Westphalia is gearing up for another battle, with the union calling for another strike imminent. Here's what you need to know about the ongoing wage dispute and its potential impact on trade.
Last week, the employees of Diebels in Issum walked off the job for two hours in a warning strike organized by the union Nahrung-Genuss-Gaststätten (NGG). With warning vests and red signs in tow, they shut down the brewery gates, putting a halt to the production of around 50,000 bottles of beer per hour.
"The employers are putting on the brakes with regard to wages, which is why they're causing a bottleneck in the beer line now," says Marti Mura, regional manager of the NGG for the Ruhr area. Despite weeks of negotiations, no agreement has been reached, and the union is calling for further strikes before the next round of negotiations on July 3.
So, what does this mean for trade? Well, with less beer being produced in Rhineland-Westphalia, there could be potential disruptions in beer supply, especially during high-demand periods such as holidays and summer temperatures. However, it's important to note that the extent of these disruptions depends on the duration and intensity of the strike, as well as the ability of breweries to maintain production levels or secure alternative supplies.
While Diebels, the traditional brewery in Issum, hasn't experienced any issues with beer supply just yet, other brands like Veltins and Warsteiner might not have enough bottles in every store. For instance, Veltins and Warsteiner have already experienced bottle shortages, and further, longer strikes in the coming weeks could lead to the same for other brands.
Despite these potential challenges, it's worth noting that breweries have been seeing success in other areas like the production of non-alcoholic beer and other beverages such as lemonade and soda. Moreover, production is becoming increasingly automated, allowing companies to save costs.
However, not all breweries are in a position to save costs. Last year, AB InBev, Diebels' parent company, announced plans to reduce jobs by the end of 2023 to save costs. Sixty-five employees had to go, and one of the two bottling lines was shut down. Nevertheless, the line was recently reactivated to compensate for a short-term increase in demand. Job cuts and cost reductions are just a few of the factors that could exacerbate the impact of a strike on the brewing industry in Rhineland-Westphalia.
As we wait for the next round of negotiations, only time will tell how this affects the beer trade in the region. Stay tuned for updates!
Additional Insights:
- According to recent data, non-alcoholic beer is experiencing a boom and is becoming increasingly popular among consumers.
- Many breweries have also started producing other beverages, such as lemonade and soda, to diversify their product offerings.
- Automation in production is allowing companies to save costs and increase efficiency.
- Job cuts and cost reductions could impact the brewing industry's ability to withstand a potential strike and may affect the overall impact on trade.
The ongoing strike at breweries in Rhineland-Westphalia, such as Diebels, could potentially disrupt the production and supply of beer, especially during high-demand periods. Moreover, the finance sector might be affected as breweries cut costs to compensate for potential losses due to the strike.
