German Unions Agree on Ten Percent Wage Increases

Two German rail drivers' unions have agreed to ten percent wage rises by 2010, as part of plans to overhaul the pay structure.

The agreement between state-owned rail company Deutsche Bahn (DB) and unions Transnet and GDBA (covering about 150,000 railway employees) forms part of plans for a new pay structure dividing up the workforce into six parts, each with its own pay agreement.

However, the agreement does not involve train drivers' union GDL, which has called strikes since July this year, demanding increases of up to 31 percent.

Last week, DB announced it is to sue GDL after freight drivers entered 62 hours of strikes, telling the German media it had initiated court proceedings to sue the union for five million euros (US$7.5m).

Last week's 62-hour rail strike was Germany's biggest ever, costing the Germany economy about €75m a day.

By staff writer