Railwaygazette.com

Join us on Facebook Join us on Facebook!
Follow us on Twitter Follow us on Twitter!

Poll

Industry Poll

Are local jobs more important than value for money in rolling stock procurement?
Yes
No
Don't know

News

Share |

Pay deal will make DB sale less juicy

06 February 2008

RARELY has this column found it necessary to address labour relations in Germany. We turn to the topic in the wake of a bitter 10-month dispute between the management of Deutsche Bahn and the drivers' union GDL.

Industrial action halted DB's passenger and freight services on many occasions last year, reaching a low point on December 20 when GDL threatened an unprecedented all-out strike. DB had held out against demands for a 30% pay rise but was eventually forced to concede an increase of 8% from March 1 2008 with a further 3% from September 1, as well as a one-off payment of €800 to cover the period from July 2007 to February 2008. In addition, the working week will be cut from 41 h to 40 h from February 2009.

Germany's two other railway unions had agreed earlier to rises of 4·5%, which GDL considered unacceptable. This was partly why the drivers' union chose to fight for the right to negotiate separately - something which DB Chairman Hartmut Mehdorn was reluctant to concede. When a deal was brokered at a meeting convened by Transport Minister Wolfgang Tiefensee on January 12, DB was obliged to give in, setting an unwelcome precedent. A formal agreement was to be signed by January 31.

This comes as another attempt is being made to find a way to sell part of DB AG to the private sector - the parliamentary transport committee is expected to unveil a revised formula this month. With wage costs markedly higher, DB is likely to prove less attractive to investors - which may of course have been GDL's objective all along.


Weekly E-Newsletter

Register here to receive the free Railway Gazette Weekly e-newsletter and keep up to date with the latest industry news.

Events

All events

Join us on Facebook

Google

Translate this page in your language:

select your language