For the first time in years, Deutsche Bahn (DB) and the Railway and Transport Union (EVG) have successfully negotiated a new collective agreement without resorting to strikes. This groundbreaking deal, which covers 192,000 employees, ensures steady wage increases, improved working conditions, and greater financial security for railway workers. The agreement is set to remain in effect until December 2027, bringing a sense of stability to the railway sector.
Significant Salary Increases and Additional Benefits
As part of the newly established framework, employees will benefit from a structured salary increase implemented in three phases. The first raise of 2% will take effect in July 2025, followed by an additional 2.5% increase a year later. The final 2% adjustment will be introduced in December 2027. This gradual approach results in an overall pay rise of approximately 6.5% by the end of the agreement period.
Beyond standard salary adjustments, the agreement includes a one-time bonus payment and special allowances for shift workers. This ensures that employees working non-traditional hours receive additional compensation, acknowledging the demanding nature of their roles.
A Mutually Satisfying Resolution
Both DB and the EVG have expressed satisfaction with the outcome of the negotiations. Martin Seiler, DB’s HR director, described the deal as a “balanced and sustainable solution,” while EVG’s chief negotiator, Cosima Ingenschay, noted that the final agreement closely aligned with the union’s initial demands. Specifically, EVG had pushed for a 7.6% wage increase, along with an extra 2.6% for shift workers, which was largely met in the final agreement.
Timing and Political Considerations
The timing of this agreement was crucial, as both DB and the EVG aimed to finalize negotiations before Germanyâs federal election on February 23rd. The EVG had advocated for an expedited bargaining process, fearing that potential political changesâsuch as a CDU-led governmentâcould introduce uncertainties regarding Deutsche Bahnâs operational structure.
One key concern for the union is CDU candidate Friedrich Merzâs proposal to separate DBâs network infrastructure from its operational services. The EVG has strongly opposed such a move, warning that it could jeopardize thousands of jobs within the company.
Future Labor Disputes Still Possible
While this agreement ensures labor peace between DB and the EVG until January 2028, the risk of strikes has not been entirely eliminated. The German Train Driversâ Union (GDL), a smaller but historically more strike-prone union, has a separate contract that expires in February 2026. This means that railway operations could still face disruptions from March 2026 onward if negotiations between DB and the GDL fail.
A Positive Step Forward for German Railways
This landmark agreement represents a major step toward long-term stability in the German railway sector. By securing a wage increase, improving compensation for shift workers, and guaranteeing employment through 2027, the deal brings much-needed assurance to railway employees and passengers alike. However, with looming political changes and potential labor disputes on the horizon, Deutsche Bahn may still have challenges ahead in maintaining industrial harmony.
