20 December 2005

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Lidl threat makes Croatian commerce close ranks to protect companies and their workers

The workers of German hard discounter Lidl, which is present all over Europe with 3500 stores, work in almost slave-like conditions, says the country’s UNI-Commerce affiliated commercial workers’ trade union. The company has recently arrived in Croatia, and plans a fast expansion in this future European Union country.

- Breaks, days off and annual leaves do practically speaking not exist in Lidl. Thus, the chain has taken a leading position in Europe when it comes to violating workers’ rights,  Ana Knežević, the commerce union president, says.


Ana Knežević (right), here speaking to the UNI World Congress in Chicago in August, while UNI Commerce's Alex Rüdig is interpreting, sees Lidl's entry to Croatia as a serious threat. The hard discounter's track record on labour relations is poor, and horror stories about its behaviour towards its own personnel abound. German UNI affiliate ver.di published a Black Book on Lidl some time ago, which the Zagreb-based commerce union has translated into Croatian.

- Since establishing works councils in Lidl is made impossible in Germany, and other trade union action was is hindered as well, very little has actually been known by the public about what is hidden in the chain, that has an annual turnover of 36 billion Euros every year, says the union president.

- Last year saw a media storm and whirled up passions that were caused by the Black Book on Lidl. It has not quieted down yet, and the book was presented yesterday by the union, in Croatian language version. In the book, Germany’s large commerce trade union ver.di brings forward disturbing testimonials of German, as well as Czech and Austrian Lidl workers.

Climate of fear

- If the worker testimonials are any indication, the business policy and philosophy of Lidl are based on a constant monitoring of workers, and on creating a climate of fear, on threats and on the violation of fundamental rights, but also on the explicit prohibition of organizing the workers in works councils or trade unions. This is how Ana Knežević, president of the Commercial Trade Union of Croatia, sees the role played by Lidl.

Gudrun Giese, co-author of The Black Book on Lidl and a journalist and activist of the German trade union Ver.di, emphasized yesterday in Zagreb that Lidl is one of the cheapest supermarket chains in Germany, this is particularly at the expense of its workers. Lidl’s aggressive market approach started as early as fifties, when the first stores with cheap goods and very poorly paid labour force were opened.

- A few years ago we made contact with some Lidl workers because we heard that they are not allowed to establish a works council. We were surprised because German law makes this possible in each company, which has more than five employees. When we looked into it, we found out that works councils exist in only eight out of the 2600 stores in Germany. This is how we got the idea to present everything in a document, and so this book came about, explained Giese.

Also abroad, Lidl has received a less than flattering attention by media and the public. Its headband scandal will probably never go away, although the company has tried to deny that it ever happened. Last year, it was reported that the German hard discounter demanded that female shopworkers in the Czech Republic wear special headbands during their monthly periods. Otherwise, they would not be allowed to go to the toilet during working hours, which workers in general had been forbidden from doing.

Coops prepared for possible unfair competition

Also local competitors, such as the country's large cooperative chain Konzum, are preparing for Lidl's market expansion in Croatia.

- Lidl wants to catch up with Konzum in terms of the number of stores and turnover, said its president Drago Munjiza. But he told that the coop workers did not need to  be afraid, as Konzum will continue to treat them as the company’s greatest asset.

- If Lidl enters our market with low prices, pushing down the price of labour, Croatian chains will become uncompetitive, and we must not allow that.

- This will be possible only through joint action, and a partnership between the Government and social partners, Mr Munjiza said.