Deutsche Bahn and Railway and Transport Union (EVG) Reach New Wage Agreement
Berlin, Germany – Deutsche Bahn and the Railway and Transport Union (EVG) have reached an agreement on a new collective bargaining agreement, as announced by the railway operator in Berlin. The agreement includes a salary increase of a total of 6.5% in three stages by the end of 2027, benefiting approximately 192,000 Deutsche Bahn employees.
The initial 2% increase will take effect in July 2023, followed by a further 2.5% increase in December 2024. An additional 2% increase is scheduled for December 2027. A one-time payment of €200 will also be made in April 2023.
EVG members will receive an additional bonus of €156 three times instead of the one-time payment. Additionally, employees working shifts will receive an annual lump sum of 2.6% starting in December 2026, which can be partially converted into two free days.
The EVG has also negotiated an employment guarantee until the end of 2027, as well as structural adjustments to wage scales between different occupational groups. The agreement has a term of 33 months, from April 2025 to the end of 2027.
The third round of negotiations, which began on Wednesday, was described as "difficult work" by EVG negotiator Cosima Ingenschay prior to its commencement.
Both parties expressed satisfaction with the outcome. DB’s HR Director Martin Seiler stated that "a reasonable overall package has been put together." Ingenschay noted that the agreement "came very close to our demands," which included additional compensation for shift workers, employment security until the end of 2027, bonuses for EVG members, and structural wage adjustments. The union’s initial demand in the negotiations was for a 7.6% wage increase, with an additional 2.6% for shift workers.
The current collective bargaining agreement between Deutsche Bahn and EVG expires at the end of March, meaning that strike warnings could have been issued as early as April if negotiations had failed. The fact that the new agreement has been reached without any strike warnings is unusual. According to union data, the last time this occurred was in 2016.
As a result, the next possible strike at Deutsche Bahn is not scheduled to occur for over a year. The collective bargaining agreement between the railway operator and the smaller but more strike-prone German Locomotive Engineers’ Union (GDL) expires at the end of February 2026.
Both parties achieved their goal of reaching an agreement before the Bundestag elections by concluding the negotiations. Verhandlungen began in late January at the request of EVG, which was concerned about potential economic and structural uncertainties for the company under a Union-led federal government.
The Union intends to break up the company, separating transportation companies such as long-distance and local transport from the rail network, which would operate independently. EVG and the current Deutsche Bahn board oppose such plans. The ailing and heavily indebted state-owned company is undergoing a stringent three-year restructuring program, which is particularly affecting freight railway DB Cargo under pressure from the EU Commission. Thousands of jobs there are being cut or outsourced as a result.
