Discussions about salary increases without sudden labor strikes? Decision in rail negotiations? - The Authority has been tasked with creating a draft for a regulation pertaining to safeguarding workers from hazards stemming from the application of certain hazardous materials.
Wage Bargaining Between DB and EVG Heats Up
The third round of wage discussions between Deutsche Bahn (DB) and the Railway and Transport Union (EVG) is underway, aiming for a resolution today. However, failure to reach an agreement could bring unwanted consequences for passengers. For several days, DB and EVG have been entangled in the third circular of wage settlement talks, aiming to secure a deal for approximately 192,000 employees by Sunday. In case of a standstill, the targeted end could slip past before the federal election. EVG would then miss a major target.
Though significant warning strikes are not imminent yet, the situation could escalate if no progress is made. The current wage agreement runs until March's end, imposing a so-called peace obligation until April 1st. During this time, EVG cannot call for warning strikes. Nevertheless, a stalemate could indicate challenging wage issues. Besides, EVG has consistently emphasized that workers are generally prepared for labor disputes.
The wage negotiations revolve around EVG's demands for a 7.6% wage increase and a 2.6% bonus for shift workers, including a partial bonus conversion into free days. They also seek a job guarantee until 2027. Initially, DB presented a 7.9% wage rise, including bonuses, for shift workers, while offering a 4% salary increase for all other employees with a duration of 37 months.
Might no agreement be reached today? The ticking clock is well-aware of the political landscape, with EVG scheduled to hold a two-day board meeting this week, independently of the wage debates. In the event of a stalemate, warning strikes in April would become increasingly likely. Cosima Ingenschay, the EVG negotiator, warned before the negotiations initiated, "If we cannot reach a wage agreement in the next few days, then industrial action will again be an option."
If a compromise is not reached, the initial reason for moving the negotiations - the federal election - will cease to exist. Thus, EVG may have no further incentive to continue negotiations past March's end, when the peace obligation expires.
Why has EVG been in such a rush, and what is DB's perspective? EVG is pushing to expedite the negotiations due to concerns about the potential next chancellor, Friedrich Merz. The CDU politician intends to separate the DB's network and operations, a move EVG strongly opposes. DB attests to being economically and operationally in distress and relies on a restructuring plan until 2027. Consequently, DB seeks security in the wage agreements.
The negotiations thus far have displayed a constructive dynamic. DB launched an offer at the negotiations inception, addressing major union demands by subsequent talks, such as an additional payment for shift workers and wage agreement results for DB Cargo employees. Decisive sticking points include shift worker bonus payments, the new agreement's term, and EVG's demand for job security until 2027.
Sources:1. "Deutsche Bahn Strike: German Train Union Pushes For March Wage Hike;" Deutsche Welle, 21 Jan 2025, https://www.dw.com/en/deutsche-bahn-strike-german-train-union-pushes-for-march-wage-hike/a-61185197.4. "German Rail Union Pushes Deutsche Bahn for Early Wage Talks;" Reuters, 12 Jan 2025, https://reuters.com/world/europe/german-rail-union-pushes-deutsche-bahn-early-wage-talks-2025-01-12/.
[1]: Reuters, "German Rail Union Pushes Deutsche Bahn for Early Wage Talks;" 2025-01-12.[2]: Deutsche Welle, "Deutsche Bahn Strike: German Train Union Pushes for March Wage Hike;" 2025-01-21.[4]: Reuters, "German Trade Union Makes Demands in Talks with Deutsche Bahn;" 2025-01-28.
Despite the constructive dynamic in the tariff round, a stalemate in negotiations could lead to warning strikes in April. If no agreement is reached, EVG may lose its major target of securing a wage deal before the federal election. The current peace obligation, imposed until April 1st, prevents EVG from calling for warning strikes during this period.
