Workers in Germany go on strike because of factory closing down

Is the entrepreneur creating jobs?

The employees of the cheese factory in Rosenheim went on strike on June 3. This happened after the owner of the plant, the French corporation Danone, decided to close it down. 160 employees will lose their jobs and now they are demanding that the employer has to pay severance.

The strike at Danone factory
The strike at Danone factory

The strike is supported by the union of workers in the food industry, beverage and catering (NGG). The union reports that the goal of the strike is to receive decent severance pay and social benefits from Danone because what the company is offering now is «clearly insufficient». Moreover, the closure mainly affects workers over 50 who have poor prospects in finding new jobs. The specific social benefits that the workers advocate have not yet been named.

The union says that the company could continue to work, increasing production capacity since the plant stayed profitable even in times of crisis.

However, from the point of view of the employer, the enterprise has become unprofitable — according to Danone, sales in Rosenheim have decreased by 70% over the past 10 years. The closure of the plant is scheduled for June 31, 2021. In 2018, the company sales amounted to almost 25 billion euros.

It is worth noting that the closure of the plant is far from a special case. Production is reduced in all countries with capitalist economy. The reason for this is the crisis of overproduction, which is also typical for capitalism. And it is caused by the impoverishment of the working people, who simply have nothing to buy goods for. Thus, even in the “prosperous”, at the first glance, capitalist countries, the contradictions between the working people and the capitalists will lead to more and more strikes. And subsequently to the overthrow of the power of capital itself.