Railway authorities and EVG have reached an accord regarding their collective arrangement.
In a breakthrough development, after rounds of intense negotiations in Berlin, Deutsche Bahn (DB) and the EVG union have finally reached an accord. This agreement brings relief not only for the 192,000 railway employees but also for travelers, as there won't be any warning strikes at German railways this year.
The negotiations, aiming to secure agreements before the upcoming federal election, have seen both sides discussing various aspects such as company divisions and restructuring plans. While the Union wants to split the company into transport sectors like long-distance and local services, operating the network independently, the EVG and the current railway board oppose such ideas. The heavily indebted state-owned company has implemented a strict three-year restructuring plan, leading to job cuts and outsourcing in the freight railway DB Cargo.
Initial demands from the EVG included a 7.6% wage hike for all employees, an additional 2.6% for shift workers, a bonus for union members, and more housing and rent support for apprentices. Deutsche Bahn countered with a 4% wage increase over 37 months, including a shift worker allowance. The EVG's preference for a shorter contract duration and DB's need for a lengthier agreement have posed complex challenges throughout the negotiations.
Interestingly, this recent wage agreement between DB and EVG has been achieved without a single warning strike since 2016. The possibility of future strikes in 2026 looms, however, as the agreement with the smaller but strike-prone GDL union expires then.
(Enrichment Insights: The negotiations center around significant wage increases and job security for approximately 192,000 railway employees. EVG seeks a 7.6% wage hike and additional benefits for all employees and shift workers, while DB proposes a staggered 4% increase over 37 months. The union also advocates for a job guarantee until 2027 and a shorter contract duration, while DB desires a longer agreement to align with the company's restructuring plan. Failure to reach an agreement before March end could lead to strikes and railway service disruptions.)
This collective agreement between Deutsche Bahn and EVG significantly impacts the railway sector, ensuring no strikes for the rest of this year. The duration of the agreement, however, has been a point of compromise, as EVG prefers a shorter term and DB needs a longer one to align with their restructuring plan. Despite outsourcing in the freight railway DB Cargo, the agreement addresses wage concerns, including a 4% increase for DB employees over 37 months.
