German fast-food unions escalate action after wage talks stall

Germany's Ernährung, Gastronomie, Genuss (NGG) union announced on January 15 that it would escalate industrial action after negotiations with the Bundesverband der Systemgastronomie (BdS) over a sectorwide wage agreement reached an impasse. The dispute covers the system gastronomy sector, a category that includes major fast-food chains such as McDonald's, Burger King and KFC, and could touch restaurants, distribution and supply operations across the country.

The BdS had offered a minimum hourly rate of €13 under a contract spanning 42 months, with the first raise to be backdated to January 1, 2025. NGG rejected the offer and pressed for higher terms, including a €15 minimum hourly wage, a monthly pay rise of €500, a one-time €500 payment for union members and increased pay for interns. Union leaders framed their demands as necessary to secure living wages and improved working conditions for many fast-food workers who often juggle multiple jobs or rely on public assistance.

NGG said the escalation could involve as many as 120,000 workers in the sector, signaling a large-scale campaign that could include coordinated strikes and mass protests. If realized, such action would affect crews working front counter and drive-thru, back-of-house kitchen staff, and workers in logistics and supply chains that feed system gastronomy outlets. The union emphasized the reach of the campaign by naming system gastronomy rather than individual brands, a tactic designed to pressure employers collectively.

For employees, the dispute highlights persistent cost-of-living pressures and the thin margins many fast-food workers face. Higher hourly minimums and lump-sum payments would raise take-home pay and reduce reliance on secondary shifts or public benefits for affected workers. For managers and franchisees, strikes could mean short staffing, lost sales and operational headaches during peak shifts, while wider disruptions in supplier networks could complicate restocking and prep work.

Employers in the BdS face a balancing act between containing labor costs and avoiding sustained operational disruption. A 42-month timeline for wage increases signals a longer-term cost plan from the employers, while NGG's demands aim for faster, more immediate relief. The impasse underscores a broader European trend of intensified labor organizing in low-wage service sectors.

What comes next is likely further negotiation punctuated by targeted industrial action. For workers, the unfolding campaign will be a test of union leverage and sector solidarity; for employers, it will be a moment to assess contingency staffing and public response. Observers and employees should watch for strike announcements, bargaining updates and any moves by individual chains to negotiate separate deals with franchisees or national operators.