Karstadt staff conceed wages to keep retailer alive - News

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Karstadt staff conceed wages to keep retailer alive

By: AFX | 07 Nov 2009 | 10:54 AM ET

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ESSEN, Germany, Nov 7 (Reuters) - The 28,000 employees at German department store chain Karstadt initially agreed to a plan to reduce wage costs by about 150 million euros ($223.1 million) over three years to prevent a breakup of the company. On Saturday, German trade union Verdi said it reached a deal with the administrator of Karstadt, a unit of insolvent retailer Arcandor, that should be formally approved this coming Monday. Although the administrator, Rolf Weidmann, said he saw a good chance for Karstadt as a whole to survive now that staff made this key contribution to cost reduction, Verdi deputy union leader Margaret Moenig-Raane said 17 of Karstadt's 126 department and athletic wear chain stores were still threatened. (Reporting by Nikola Rotscheroth; editing by Chris Pizzey) Keywords: KARSTADT/ (christiaan.hetzner@thomsonreuters.com; Reuters Messaging: christiaan.hetzner.reuters.com@reuters.net; +49 69 7565 1249) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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