Strike Averted: Deutsche Bahn and Union Reach Agreement

Berlin - Passengers of the Deutsche Bahn can breathe a sigh of relief as a potential strike in the rail sector has been averted. The Deutsche Bahn and the Railway and Transport Union (EVG) have successfully negotiated a new collective agreement affecting approximately 192,000 employees. The railway company announced this development on Sunday.

The new agreement includes a salary increase structured in three phases, totaling over 6.5 percent by the end of 2027. The first salary increase of 2 percent will take effect in July of this year, followed by an additional 2.5 percent in July 2026, and a final increment of 2 percent in December 2027. Furthermore, employees working in shift roles will receive an annual bonus of 2.6 percent starting in December 2026, which can be partially converted into two additional days off. In April, there will also be a one-time payment of EUR200. Members of the EVG will benefit from three tax-free bonuses of EUR156 each.

Interestingly, this collective agreement spans 33 months, which is longer than usual, running until the end of 2027. Initially, the EVG had sought a wage increase of 7.6 percent during negotiations, while the Deutsche Bahn had proposed a total increase of 7.9 percent, including allowances for shift workers, over a slightly shorter period of just over three years.

The swift resolution of this agreement stands in contrast to previous years, where negotiations have often dragged on. The third round of negotiations began on Wednesday, and this successful outcome has allowed both parties to avert any planned warning strikes. According to the EVG, the last successful collective agreement without any labor action occurred in 2016.

Both the Deutsche Bahn and the union were keen to finalize this agreement ahead of the upcoming federal elections on February 23, to establish clear terms in light of potential shifts in government. The opposition party, currently leading in polls, has indicated intentions to restructure the state-owned company into a distinct transport entity and infrastructure management entity.

Looking ahead, the next warning strike in the rail sector is not anticipated until March of the following year. The current agreement will remain active until February 2026, when the contract with the smaller but established union, the German Locomotive Drivers' Union (GDL), is set to expire. It is noteworthy that during the previous negotiation round in the spring, the GDL called for strikes on six occasions, leading to a complete halt in rail traffic for a day in March.