25 March 2002

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UNI Commerce will discuss Rewe-Billa with affiliates:
German multinational to close stores at home, but continues expansion abroad

German retailer Rewe has announced that it will close 150 of its stores at home. This follows the closure of 300 stores last year. Today, the company has 7,300 stores.

Outside Germany, Rewe will continue its fast expansion. Almost a quarter of the total turnover of the German retailer is generated abroad. Rewe is present in 11 countries, many of which are in Central and Eastern Europe.

Austrian Billa, a large Rewe-subsidiary, manages the company's foreign operations. After a deal with another large German retailer, Tengelmann, to which it handed over its Spanish interests in return for stores in Italy, Rewe is now a leading trader in that country. Of the altogether 110 new stores to be opened abroad this year, 20 to 25 will be in Italy.

Commerce unions to meet in Zagreb

UNI Commerce is working closely with its affiliates in the new markets, to help them organise and establish proper labour relations in Rewe - Billa. Early April, a UNI Commerce meeting will be held in Zagreb, Croatia, together with German and Austrian affiliates Ver.di and GPA, to develop this cooperation further. Since the beginning of last year, UNI Commerce runs an organising project in Rewe in Croatia, together with the commerce trade union, supported by Norwegian affiliate HK.

In many of the new markets, Rewe does not live up to its reputation as a proper employer at home in Germany. Appalling violations of labour legislation and workers' rights have been registered in many of these countries. Through organising and developing a social dialogue with the company, UNI Commerce seeks to help its affiliates to change this situation.

Among the Rewe-owned stores, which are fast spreading through large parts of Europe are the Billa supermarkets, the Penny Markets and the Minimal-markets. There is a strong emphasis on discount stores and Rewe is one of the major players in this sector, competing with Aldi, Lidl, Tengelmann and others.