EVG Calls for the Dismissal of DB Cargo CEO Sigrid Nikutta

The EVG pulls the emergency brake: Sigrid Nikutta must be dismissed as CEO of DB Cargo. After nearly six years at the helm of the company, it is clear: Her course is leading DB Cargo to the abyss. What once began with great promises has ended in disillusionment and stagnation. There is nothing left of the hope for a fresh start. Instead of growth, there has been regression; instead of improvements, chaos; instead of a future strategy, a policy of shrinking and dismemberment.

From: Railway and Transport Union (EVG)

(Berlin/Mainz) “Nikutta’s record is devastating – over 3.1 billion euros in losses since her appointment speaks for itself,” writes EVG Vice President and Deputy Chair of the Supervisory Board Cosima Ingenschay in a letter to railway chief Evelyn Palla and DB Supervisory Board Chairman Werner Gatzer. “What she calls ‘transformation’ is in reality a headless winding down.” While the workforce gives their all every day to keep trains running, the management is selling off valuable assets, sending essential personnel home with severance packages, and awarding contracts unnecessarily to third parties. The consequences are dramatic: declining quality, poor punctuality, and increasing uncertainty. Cargo urgently needs a strategy for business development, not for business winding down.

DB Cargo is the backbone of the German economy. Without Cargo, no blast furnace, no steel mill, no car factory operates. Yet instead of strengthening the rail system, the CEO is lost in self-promotion and social media appearances. “Her energy flows into headlines – not into solutions,” criticizes Ingenschay.

The EVG is now drawing the consequences: Nikutta has lost trust. For us, it is clear – only a personnel and strategic fresh start can save DB Cargo.

“We take responsibility – for the employees, for the company, and for the future of rail freight transport in Germany. A future for DB Cargo can only exist if Ms. Nikutta has no future there anymore.”

Comment by Andreas Müller

The Deutsche Bahn and especially its freight subsidiary DB Cargo are permanently in negative headlines. It is generally difficult to hold the position of CEO of DB Cargo. The framework conditions leave no room for maneuver. At the end of the day, one can only profile oneself with a reduction in losses. Showing a balanced account or even a profit is pure wishful thinking.

The appointments to the top positions of such federally owned companies are usually made primarily according to political party affiliation, then according to merits within the respective party, and of course, also according to qualifications.

The “enemy” in federally owned companies is unfortunately usually not at the competition, but sits in-house. In this example, in the form of unions but also in the form of sister companies like InfraGO. The criticism directed at Ms. Nikutta may well be justified, but in many cases, these unions are the brake shoe for possible development. Although the EVG has so far been little noted for strikes, the GDL has been much more so (two railway unions that do not think alike…). What a few strike days cost the employer, especially DB Cargo and thus the economy, is of no concern to them. As long as there is more pay for even less working time.

An improvement or even a solution is not in sight under such circumstances. The instruments for it are simply lacking. Whether this broadside from the EVG is helpful and whether a replacement of Nikutta will really provide relief…? That is to be doubted. Especially since such jobs are not taken on by many, let alone big names from the private sector.

Photo: © Deutsche Bahn