Key Points
Ditsch workers strike 40 hours over 20-30% East-West wage gap.
88% reject 12% raise offer over three years.
Second major strike; 2,500 total hours struck across region.
Union demands full wage parity, not gradual narrowing of gap.
Workers at Ditsch, the world’s largest pretzel manufacturer, launched a 40-hour strike on Thursday at 2 p.m. that runs until Saturday morning. The union NGG called the action after 88% of members rejected the employer’s offer to raise wages 12% over three years. At stake: closing a 20-30% pay gap between eastern and western Germany that has persisted since reunification.
Why the wage gap still exists after 36 years
Eastern German food industry workers earn up to one-third less than western counterparts, according to the NGG union. Ditsch employs about 600 workers in Oranienbaum-Wörlitz in Saxony-Anhalt. The employer’s 12% raise offer over three years would leave many workers near minimum wage, union negotiator Olaf Klenke said.
The strike and employer response
The 40-hour strike began Thursday at 2 p.m. and runs until Saturday morning with minimal operations. This is the second major action; workers also struck for 24 hours in early June. Across all affected Saxony-Anhalt plants, 2,500 hours of strikes have occurred in the ongoing dispute. Ditsch said in May it had reached its economic limits with the offer.
Union demands and escalation risk
The NGG says the wage gap must close entirely, not narrow gradually. The union warns of escalation in the food industry pay dispute that has dragged on for months. A comparable win occurred at Glockenbrot bakery, where workers secured a significant raise after facing layoff threats. The NGG represents workers across the food, beverage, and hospitality sectors.
What this means for investors
Ditsch is privately held and not publicly traded, so the strike has no direct stock impact. However, the dispute signals rising labor costs in German food manufacturing and highlights persistent regional wage inequality. Companies in eastern Germany face mounting pressure to align pay with western standards, which could pressure margins across the sector.
Final Thoughts
Ditsch’s 40-hour strike underscores the East-West wage divide that remains unresolved 36 years after reunification. With 88% of workers rejecting the 12% raise offer, the union is prepared to escalate, signaling tougher labor negotiations ahead for German food manufacturers.
FAQs
Workers rejected a 12% wage raise over three years, demanding equal pay with western German counterparts. Eastern workers earn 20-30% less than the west.
The strike runs 40 hours from Thursday July 9 at 2 p.m. through Saturday morning with minimal operations only.
88% of union members surveyed rejected the employer’s wage proposal in the July vote.
No. Workers also struck for 24 hours in early June. Across all affected plants, 2,500 hours of strikes have occurred in this dispute.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
About Author

Danny Kontos
Co FounderDanny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.
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