German train drivers and rail operator Deutsche Bahn have reached a final wage deal after months of negotiations.
The GDL drivers' union and Deutsche Bahn agreed earlier this month on the outlines of a deal and had spent the last two weeks working out the final details.
Under the agreement, the union's 34,000 drivers will get an eight percent raise from March and a further three percent increase from September.
In addition, drivers will receive a one-off payment US$1170 for the period July 2007 to February 2008. From February 1, 2009, drivers will also see their workweek cut by one hour to 40 hours without any drop in pay.
Deutsche Bahn said the new contract would come into force on March 1 and apply for the period from July 2007 to January 31 2009.
Further talks must take place between GDL and two other larger rail unions, Transnet and GDBA, over the coming weeks.
The GDL drivers' union and Deutsche Bahn agreed earlier this month on the outlines of a deal and had spent the last two weeks working out the final details.
Under the agreement, the union's 34,000 drivers will get an eight percent raise from March and a further three percent increase from September.
In addition, drivers will receive a one-off payment US$1170 for the period July 2007 to February 2008. From February 1, 2009, drivers will also see their workweek cut by one hour to 40 hours without any drop in pay.
Deutsche Bahn said the new contract would come into force on March 1 and apply for the period from July 2007 to January 31 2009.
Further talks must take place between GDL and two other larger rail unions, Transnet and GDBA, over the coming weeks.
Deutsche Bahn and its drivers have been at odds on wages since last March and GDL staged a series of strikes in the second half of 2007 which brought passenger and freight traffic to a halt across the country. Politicians warned that if the strikes continued they could hit Europe's largest economy.
Deutsche Bahn CEO Hartmut Mehdorn said earlier this month after the preliminary agreement was reached that the salary increases would result in job cuts and possibly lead to site closures.