Earlier this week, German train workers have initiated a six-day strike, their lengthiest ever. Analysts caution that this labor action has the potential to result in an economic loss of up to €1 billion ($1.09 billion) for Germany.

The nationwide strike initiated by the GDL, the country’s railway union, commenced on Tuesday and will continue until Monday, causing a complete halt in most passenger and freight rail operations. Both long-distance and suburban train services have been impacted by this labor action.

The strike is a result of an ongoing conflict between the GDL and Deutsche Bahn, the rail operator, regarding payment and working schedules. The union is demanding a decrease in weekly working hours from 38 to 35, along with a monthly wage rise of €555. Additionally, they are seeking a one-time payment of €3,000 to account for inflation. This strike marks the fourth one conducted by the GDL since November.

Despite Deutsche Bahn’s latest offer to the GDL which included pay increases of up to 13% and the opportunity to shorten the work week by one hour from 2026, the union deemed the suggestions inadequate.

Deutsche Bahn criticized the recent strike, with company representative Anja Broeker characterizing it as an attack on the German economy. The company plays a vital role in transporting essential materials for power plants, refineries, and other industrial businesses.

Volker Wissing, the country’s transportation minister, voiced his disapproval of the strike, expressing concern over the deteriorating state of negotiations between the union and Deutsche Bahn. Minister Wissing emphasized that the work stoppages further compound the challenges faced by the already strained supply chains, which are already grappling with disruptions in the Red Sea.

Deutsche Bahn said that every day of strike has a financial impact in the low double-digit million range on the German economy. Nonetheless, industry specialists caution that the real damages might exceed this estimate. Market analysts from the Institute for Economic Research in Cologne approximate that the work stoppage could result in daily costs of up to €100 million, with the potential for reaching an alarming €1 billion in the most pessimistic case.