Deutsche bahn and evg reach agreement in wage negotiations

Deutsche Bahn and evg reach agreement in wage negotiations

After weeks of wrangling, deutsche bahn and the german railway and transport workers’ union (EVG) have reached an agreement in their collective bargaining negotiations. Both sides agreed on moderate wage and salary increases, according to the union and the company.

Exact numbers were not known at first. During the negotiations, both sides had agreed on a corridor of 0.5 to 1.5 percent wage increases. EVG had last demanded 1.5 percent more pay for employees. Details to be presented by the negotiating parties on friday morning.

"Our collective bargaining agreement protects DB AG employees from the effects of the corona pandemic until early 2023. That was exactly our goal," said EVG chairman designate klaus-dieter hommel.

For deutsche bahn, the agreement is a "balanced conclusion", according to a statement this evening. Chief human resources officer martin seiler said: "in times of job cuts or short-time work in the german economy, the agreement is a joint signal of responsibility."

According to the EVG, the wage package excludes redundancies for the entire term of the agreement. In addition, employees with children had the option of taking up to 50 days off to care for them. 100 days for single parent employees.

The collective bargaining negotiations, which were brought forward due to the corona crisis, also dealt with the question of how to save around two billion euros in personnel costs by 2024 without jeopardizing the german railroads’ recruitment drive.

In may, federal transport minister andreas scheuer (CSU), the management board of the federally owned DB AG, the EVG and the group’s works council agreed in the "alliance for our railroads" that there would be no job cuts and no end to current recruitment. This year alone, the railroad wants to cut 25.000 new employees recruited. For around 21.According to the railroad, a job promise has already been made to 000 employees.

However, the company has suffered losses worth billions in the corona crisis, which are partly compensated by the federal government. But the company must also cut costs.

The increase in wages and salaries will be correspondingly small. Last week, the union committees demanded a 1.5 percent wage increase, the upper end of a range previously agreed by both sides. In the previous collective bargaining two years ago, the union had achieved a salary increase in two stages of 3.5 percent and 2.6 percent. Now the jump was allowed to be significantly smaller.

It remains to be seen whether there will also be a wage package with the GDL locomotive drivers’ union. In germany alone, deutsche bahn employs almost 215 people.000 employees.

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