Kaufland employees in Slovakia are voting on whether to authorise strike action after 19 rounds of negotiations failed to produce the company’s first collective agreement in the country.

The dispute coincides with one of the supermarket chain’s strongest financial performances. Kaufland increased its net profit from €79 million to €91 million in the financial year running from March 2025 to February 2026. Revenue rose by €120 million to €1.97 billion.

The result was only €2 million below Kaufland’s record profit from 2023. For the first time, the company also matched the €91 million earned by Lidl, Slovakia’s largest supermarket chain by revenue. Kaufland and Lidl are both owned by Germany’s Schwarz Group.

Nineteen Rounds of Talks End Without a Deal

Negotiations between Kaufland and the OZ KOVO trade union began in March 2025. The two sides held 19 rounds of talks but were unable to reach an agreement on wages, working hours, meal allowances and other employment conditions.

The union asked Slovakia’s Labour Ministry to mediate in April. That process also failed, ending without an agreement on July 15. OZ KOVO declared strike readiness the following day and began seeking formal support from employees for possible industrial action.

More than half of eligible employees must participate in the ballot. A majority of those voting must then support the proposal before the union can call a strike. Kaufland employs almost 8,900 people in Slovakia, including workers in supermarkets, warehouses and administrative offices.

Union Seeks Additional Compensation

Extra financial compensation remains one of the most important points of disagreement.

The union initially demanded summer and winter bonuses that would effectively constitute a 13th monthly salary divided into two payments. It later reduced its demand to a one-off payment of €700 in December 2026. Kaufland rejected the revised proposal.

Union representatives argue that the company’s financial results show that it can afford to share more of its earnings with employees. According to local OZ KOVO chairman Rastislav Hruška, Kaufland generated more than €420 million in cumulative net profit over the past five years.

The union maintains that the company’s success was created by thousands of employees working in its stores, warehouses and offices. It therefore believes that workers should receive a greater share of the retailer’s growing profits.

Kaufland Highlights Pay and Benefits

Kaufland says that it already offers above-average salaries in Slovakia’s food retail sector.

The company’s spending on wages and social-security contributions increased from €196 million to €215 million during the latest financial year. It also expanded its workforce by almost 400 employees.

The minimum starting salary for a full-time shop-floor employee working 38.75 hours per week is €1,200. Kaufland says that it reviews wages regularly and aims to remain one of the better-paying employers in the retail industry.

During the negotiations, the company also offered additional days off, a monthly shopping discount of 20 percent and an increased meal allowance. These proposals, however, were not sufficient to secure an agreement with OZ KOVO.

Pressure on Both Sides Is Increasing

The employee ballot could become a significant test for labour relations in Slovakia’s retail sector. A vote in favour of industrial action would not necessarily result in an immediate strike, but it would give the union a formal mandate and strengthen its position in any further negotiations.

For Kaufland, a strike involving even part of its workforce could disrupt deliveries and supermarket operations. It could also create reputational difficulties because the labour dispute is taking place at a time when the company is reporting a near-record profit.

The dispute reflects a broader question affecting many European businesses: how the benefits of strong corporate performance should be divided between owners, investment and employees.

Whether the two sides return to negotiations may now depend on the result of the ballot. Kaufland’s financial position appears strong, but the company and its workers remain far apart over how that success should be reflected in pay and employment conditions.