Deutsche Bahn and EVG Ink Long-Term Labor Agreement, Averting Strikes
Background
The Deutsche Bahn (DB), Germany’s national railway operator, and the Eisenbahn- und Verkehrsgewerkschaft (EVG), representing its employees, have reached a comprehensive labor agreement, staving off the threat of prolonged industrial action.
Key Provisions
The agreement provides for a 6.5% wage increase for approximately 192,000 DB employees, to be phased in over several steps. Additional provisions include:
- Shift premium for night-shift workers
- Employment security until the end of 2027
- Bonus for EVG members
- Structural salary adjustments between different occupational groups
- Extension of the agreement to employees of the ailing freight subsidiary DB Cargo
Union Concerns
While both parties expressed satisfaction with the outcome, the EVG has raised concerns about the lengthy contract term, which extends until the end of 2027. This could limit the union’s ability to respond to unforeseen events, such as the COVID-19 pandemic or the war in Ukraine.
The EVG also expressed disappointment with the lack of focus on younger workers in the agreement. "The negotiations showed little appreciation for our young colleagues," said EVG negotiator Cosima Ingenschay.
DB’s Financial Situation
DB is facing significant financial and operational challenges and is implementing a restructuring program until 2027. The company’s limited financial flexibility has been a key factor in the labor negotiations.
"The very long contract term gives us the planning security we urgently need for the successful restructuring of the DB," said DB Human Resources Director Martin Seiler.
Political Uncertainty
The outcome of the upcoming Bundestag election is casting a shadow over the labor agreement. CDU politicians have raised questions about the continuation of planned upgrades to major rail lines.
The EVG has expressed concern that a CDU-led government could potentially harm the DB’s restructuring efforts and led to asset separation between the network and operations.
GDL Strikes Still Possible
While the EVG agreement effectively prevents strikes until January 2028, the smaller but more militant Gewerkschaft Deutscher Lokomotivführer (GDL) poses a potential threat to service interruptions. The GDL’s contract expires in February 2026, leaving the possibility of industrial action starting in March 2023.
EVG’s Preemptive Move
The EVG accelerated the labor negotiations in anticipation of Friedrich Merz potentially becoming the next Chancellor. Merz has advocated for separating the DB’s network and operations, a move the EVG vehemently opposes.
Conclusion
The labor agreement between the DB and EVG provides stability and wage increases for DB employees, but leaves both parties cautiously optimistic about the future. The long contract term and ongoing political uncertainty introduce elements of risk for both the railway operator and its employees. The potential for further strikes by the GDL remains a looming concern.
