The German rail and transport trade union EVG is calling for the resignation of DB Cargo CEO Sigrid Nikutta. EVG believes that Nikutta is leading the rail freight operator “into the abyss.”
EVG has turned directly to the new CEO of Deutsche Bahn, Evelyn Palla, and Supervisory Board Chairman Werner Gatzer with an appeal to remove Nikutta from her position. “Nikutta’s track record is devastating – over 3,1 billion euros in losses since she took office speak for themselves”, wrote EVG Vice President and Deputy Chairwoman of the Supervisory Board Cosima Ingenschay.
The trade union is highly critical of the path that DB Cargo has taken by selling off assets, laying off personnel and outsourcing services. “The consequences are dramatic: declining quality, poor punctuality, and growing uncertainty. [DB] Cargo urgently needs a strategy for business development, not for business execution”, EVG says.
European Commission on the heels of DB Cargo
DB Cargo is currently trying to make ends meet – it is on a strict deadline to become profitable by the end of 2026. Otherwise, it might face further steps taken by the European Commission, which sees the level of state aid to DB Cargo as disproportionate. Such a fate befell French freight operator Fret SNCF.
For that reason, DB Cargo is trying to rid itself of unprofitable business segments and is scaling down operations: “Instead of growth, there has been regression; instead of improvements, chaos; instead of a strategy for the future, a policy of shrinking and fragmentation”, EVG characterises developments at DB Cargo.
A fresh start
The trade union worries that the failures of DB Cargo could impact the broader German economy, seeing the rail operator as its “backbone”. Rather than strengthening the rail system, EVG believes that Nikutta is “losing herself in self-promotion and social media appearances.”
The union draws a clear conclusion: DB Cargo needs a fresh start, both in terms of personnel and strategy. “We take responsibility – for the employees, for the company, and for the future of rail freight transport in Germany. There can only be a future for DB Cargo if Ms. Nikutta no longer has a future there.”